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.

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Definitions:

High School

An education institution for students, typically between the ages of 14 and 18, that follows primary school and precedes higher education.

Juvenile Delinquency

Illegal or antisocial behaviors committed by a person under the age of majority.

Illegal Behavior

Actions or activities that are prohibited by law, ranging from minor offenses to serious crimes against persons or property.

Adolescents

Young people in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.