A Firm Wanting to Avoid Bearing the Costs of Establishing

question 148

Multiple Choice

A firm wanting to avoid bearing the costs of establishing production facilities in a foreign country would do well to avoid:

• A)exporting.
• B)FDI.
• C)licensing.
• D)franchising.

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Definitions:

False Statement

An untrue declaration or representation made by someone, intentionally or unintentionally.

Undue Influence

A legal term denoting a situation where an individual is able to influence another's decisions due to the relationship between the two, often negating the latter's free will.

Contractual Relationship

A legally binding connection between two or more parties outlined by a contract, involving mutual obligations.

Fraudulent Misrepresentation

A false statement that is knowingly made to induce a party to enter into a contract, leading to harm or loss.