A Firm Is More Likely to Engage in Horizontal Foreign

question 22

Multiple Choice

A firm is more likely to engage in horizontal foreign direct investment if

• A) trade costs are high and there are internal economies of scale.
• B) trade costs are low and there are internal economies of scale.
• C) trade costs are high and there are external economies of scale.
• D) trade costs are low and there are external economies of scale.
• E) trade costs are low and firms experience constant returns to scale in production.

---

Definitions:

Text Box

A graphical interface element that allows users to input text into a document or application.

Chart

A visual representation of data designed to make complex information easily understandable.

Resizing Handles

Small, draggable areas on the corners and edges of a graphical object or window that allow users to adjust its size.

Form Design View

An interface in database applications that allows users to create and modify the layout and fields of forms for data entry and display.