A Firm Is More Likely to Engage in Horizontal Foreign

question 10

Multiple Choice

A firm is more likely to engage in horizontal foreign direct investment if

• A) trade costs are low and firms experience constant returns to scale in production.
• B) trade costs are low and there are internal economies of scale.
• C) trade costs are high and there are internal economies of scale.
• D) trade costs are high and there are external economies of scale.
• E) trade costs are low and there are external economies of scale.

---

Definitions:

Appeals

The process of applying to a higher court for the reversal of the decision of a lower court.

Courts

Judicial institutions established to administer justice through the interpretation and application of law in resolving disputes.

Execution Or Enforcement

The process of carrying out the orders of a court, such as collecting a debt or seizing property to satisfy a judgment.

Judgment

A formal decision or conclusion by a court or judge, resolving a dispute between parties in a legal case.