Which of the Following Is an Example of a Market-Seeking

question 4

Multiple Choice

Which of the following is an example of a market-seeking motive for FDI?

• A) a firm wishes to gain access to raw materials
• B) a firm follows its key customers abroad
• C) a company wishes to gain access to knowledge
• D) a company intends to avoid trade barriers

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Definitions:

Income Inequality

The unequal distribution of income within a population, where wealth is concentrated in the hands of a few.

Economically Advanced

An economically advanced country is characterized by a high level of income, diversified economy, and advanced technological infrastructure.

Poverty Rate

The percentage of the population that lives below the national poverty line, reflecting the proportion of the population experiencing poverty.

Income Redistribution

Economic policies or mechanisms designed to transfer income and wealth from certain individuals or groups to others to achieve social or economic objectives.