Which of the Following Is One of the Limitations of Exporting

question 9

Multiple Choice

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

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

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Definitions:

Blocker

In a group or teamwork context, a blocker refers to a person who obstructs or hinders progress by opposing ideas or refusing to participate cooperatively.

Aggressor

A person or entity that initiates hostility or attack, whether physical or psychological, against others.

Dominator

An entity or individual that exercises control or exert supremacy over others in a commanding or dominating manner.

Modeled Behavior

Actions displayed by an individual that serve as a reference for others, potentially influencing their behavior through observation and imitation.