FDI Is Risky Because of the Problems Associated With

question 114

Multiple Choice

FDI is risky because of the problems associated with:

• A)sharing a valuable technological know-how with a potential competitor.
• B)an increase in transportation costs, especially for those products that have a low value-to-weight ratio.
• C)doing business in a different culture where the rules of the game may be very different.
• D)the possibility of an increase in trade barriers such as import tariffs or quotas.
• E)increased production costs.

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Definitions:

Aptitude

A natural ability or talent for learning or skill acquisition.

Heredity

The transfer of genetic characteristics from parents to offspring through their genes.

Identical Twins

Twins who originated from the same fertilized egg, sharing all of their genes and typically having very similar appearances.

Fraternal Twins

Twins who develop from separate eggs and therefore are genetically distinct, although born at the same time.