Despite Its Advantages,FDI Has Been Described as an "Expensive" and "Risky

question 59

Essay

Despite its advantages,FDI has been described as an "expensive" and "risky" international growth strategy.Other things being equal,why is FDI expensive and risky? Compare the risks involved with FDI to the risks involved with exporting and licensing.

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Definitions:

Binocular Disparity

The difference in image location of an object seen by the left and right eyes, resulting from the eyes’ horizontal separation, providing a cue for depth perception.

Retina

The retina is a thin layer of tissue located at the back of the eye, responsible for receiving light and converting it into neural signals that the brain interprets as visual images.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Binocular Cue

A visual information cue that requires both eyes to provide depth perception or distance information.