Discuss Why Firms Selling Products with Low Value-To-Weight Ratios Choose

question 56

Essay

Discuss why firms selling products with low value-to-weight ratios choose FDI over exporting.

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Definitions:

Crucial Factor

An essential element or aspect that plays a pivotal role in determining the outcome or success of a situation.

Open Innovation

A business model that encourages companies to acquire outside sources of innovation to improve products and reduce costs.

Intrinsic Motivation

The drive to engage in an activity for its inherent satisfaction or pleasure, rather than for some separable consequence or external reward.

Extrinsic Rewards

Extrinsic rewards are benefits provided by an external source, such as money, grades, or praise, which motivate individuals to perform an activity.