Which of the Following Is a Reason Why Firms Engage

question 21

Multiple Choice

Which of the following is a reason why firms engage in
Vertical FDI?

• A)Firms want to engage in automated production techniques.
• B)Firms anticipate higher technology and access to capital.
• C)Legal structure, education, highways, and communications technology are usually better in lower­
• Income nations.
• D)None of these explains why firms engage in vertical FDI.

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Definitions:

Lack of Management Experience

A common challenge faced by businesses, particularly small and start-up companies, where the management team lacks the experience to make informed decisions and strategies.

Marketing Expertise

The specialized knowledge and skills in creating and implementing strategies to promote products or services effectively.

Credit Foreclosure

Credit foreclosure refers to the legal process by which a lender takes possession of a property used as collateral for a loan, typically due to the borrower's failure to make the agreed loan payments.

Business Failure

When a business closes with a financial loss to a creditor.