When ________________,A Firm Will Favor FDI Over Exporting as an Entry

question 64

Multiple Choice

When ________________,a firm will favor FDI over exporting as an entry strategy,according to the textbook.

• A) interest rates or government policy make exporting unattractive
• B) transportation costs or trade barriers make exporting unattractive
• C) cultural barriers or trade barriers make exporting unattractive
• D) cultural barriers or government policy make exporting unattractive
• E) internalization theory is not applicable

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Definitions:

Sale

The exchange of goods or services for money, forming the basis of revenue for most businesses.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically entailing fixed interest payments and principal repayment upon maturity.