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:

Rotten Apple Theory

A theory suggesting that corrupt or unethical individuals within an organization are isolated instances and not representative of systemic organizational issues.

Police Corruption

The abuse of police authority for personal or organizational gain.

Whistle-Blowing

Unveiling information or activities that are thought to be unlawful, unethical, or incorrect inside an entity.

Coercion

The act of compelling an individual to act by applying pressure or making threats.