Which of the Following Is One of the Limitations of Exporting

question 37

Multiple Choice

Which of the following is one of the limitations of exporting that leads companies to prefer FDI over exporting?

• A)The presence or threat of trade barriers
• B)The costs of acquiring a foreign enterprise
• C)The costs of establishing production facilities in a foreign country
• D)The risk of giving away valuable technological know-how to a potential foreign competitor
• E)The possibility of diminishing returns

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Definitions:

Narcissism

A personality trait characterized by an inflated sense of self-importance, need for admiration, and a lack of empathy for others.

Reciprocal Determinism

A concept in psychology that suggests an individual's behavior is both influenced by and influences their personal factors and the environment.

Secure Self-esteem

A stable sense of confidence and satisfaction in one's own worth or abilities.

Maturity Principle

The notion that individuals become more conscientious and agreeable while less neurotic as they age.