Which of the Following Is a Major Drawback of Using

question 28

Multiple Choice

Which of the following is a major drawback of using the product life-cycle theory in explaining FDI?

• A) It ignores the fact that firms invest in a foreign country when demand in that country will support local production.
• B) It does not explain why firms invest in developing countries when cost pressures become intense.
• C) It fails to identify when it is profitable to invest abroad.
• D) It ignores the fact that licensing as an entry strategy has its limitations.

---

Definitions:

Menopause

A natural biological process marking the end of a woman's reproductive years, characterized by the cessation of menstrual cycles.

Hot Flashes

Sudden feelings of warmth, often intense and accompanied by sweating, that are commonly associated with menopause.

Increasing Unhappiness

Refers to a situation or condition wherein an individual's level of dissatisfaction or unhappiness progressively grows or escalates.

Constipation

A common condition characterized by infrequent bowel movements or difficulty passing stool.