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:

Cost of Arbitration

The financial expenses associated with arbitrating disputes, including fees for arbitrators, administrative costs, and any other relevant expenses pertaining to the arbitration process.

Split

A division or separation into two or more parts, factions, or groups, often used to describe splits within organizations or political entities.

Management and Union

A dynamic relationship between company executives or administration and the organized workforce's representatives aimed at negotiating work terms.

Contract Language

The specific wording used within a contract that precisely defines the obligations, rights, and terms between the parties involved.