According to the Text,a Firm Will Favor FDI Over Exporting

question 11

Multiple Choice

According to the text,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)products with a high value-to-weight ratio are involveD.

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Definitions:

Correlational Method

A research technique that studies the relationship between two or more variables without implying causation.

Cognitive Needs

The mental requirements for the acquisition of knowledge, understanding, and reasoning, including the need for curiosity, knowledge-seeking, and understanding the environment around us.

Childhood

The period of an individual's life from birth until adolescence, characterized by growth, learning, and development.

Hereditary Needs

Basic or fundamental needs passed down from ancestors, influencing behavior and survival mechanisms.