FDI Is Risky Because of the Problems Associated With

question 118

Multiple Choice

FDI is risky because of the problems associated with:

• A) sharing a valuable technological know-how with a potential competitor.
• B) increase in the 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 increase in trade barriers such as import tariffs or quotas.
• E) increased production costs.

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Definitions:

Caption

A caption is a brief explanation or description accompanying an illustration, photo, or diagram, often providing context or additional information.

Sustainable Competitive Advantage

A long-term strategy that a company possesses, which enables it to remain more competitive than its rivals, leading to greater sales or margins and retaining loyal customers.

Strategic Focus

The act of concentrating a company's efforts and resources on a particular business strategy or goal to achieve competitive advantage.

Core Competency

A defining strength or advantage of a business, critical to its success and difficult for competitors to imitate.