The Attractiveness of Exporting Increases in Comparison to FDI or Licensing

question 112

True/False

The attractiveness of exporting increases in comparison to FDI or licensing when products have a low value-to-weight ratio.

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Definitions:

Government Intervention

Actions taken by a government to influence or regulate economic activity, often to correct market failures and achieve desired social or economic outcomes.

Prices

The sum needed to buy a product or service, shaped by aspects such as the availability of the item and the desire for it from consumers.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Market Economy

An economic system where supply and demand from consumers and businesses drive the production and allocation of resources and services, with minimal government intervention.