Which of the Following Is One of the Limitations of Exporting

question 105

Multiple Choice

Which of the following is one of the limitations of exporting that leads companies to prefer FDI over exporting?

• A)The presence or threat of trade barriers
• B)The costs of acquiring a foreign enterprise
• C)The costs of establishing production facilities in a foreign country
• D)The risk of giving away valuable technological know-how to a potential foreign competitor

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Definitions:

Collective Bargaining Model

A process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Bargaining Range

The spectrum of possible agreements in negotiation between the minimum acceptable offer and the maximum possible offer.

Bargaining Zone

Area within which the union and the employer are willing to concede when bargaining.

Canadian Labour Congress

A national trade union center in Canada, representing the interests of unionized workers.