FDI May Require Firms to Be Flexible in How They

question 41

Multiple Choice

FDI may require firms to be flexible in how they do business. Which of the following is NOT a potential problem associated with a firm adapting to a government requirement of local sourcing?

• A) a lack of local economies of scale to produce needed raw materials
• B) unreliable delivery schedules on the part of local firms
• C) uncertain quality control
• D) All of the above are potential forced local sourcing problems.

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Definitions:

Histogram

A histogram is a graphical representation used in statistics that shows the frequency distribution of a dataset by using bars of different heights or lengths.

Appliances Store

An appliances store is a retail establishment specializing in the sale of electrical or mechanical devices used in homes for tasks like cooking, cleaning, or food preservation.

Daily

Occurring every calendar day or pertaining to the activities that take place within the span of a single day.

Heights

The measurement of an individual or object from base to top or from the ground to a specified point.