A Firm Will Favor FDI Over Exporting as an Entry

question 18

Multiple Choice

A firm will favor FDI over exporting as an entry strategy when

• A) the costs of establishing production facilities are high.
• B) the transportation costs or trade barriers are high.
• C) there are problems associated with doing business in a different culture.
• D) the products involved have a high value-to-weight ratio.
• E) the firm wants to occupy a position that falls inside the efficiency frontier.

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Definitions:

Related Ideas

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Marketing Strategies

Plans designed to promote and sell a product or service effectively to the target audience.

Originally Stated Objectives

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