A Firm Will Favor FDI Over Exporting as an Entry

question 18

Multiple Choice

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) the products involved have a high value-to-weight ratio.
• E) the firm wants to occupy a position that falls inside the efficiency frontier.

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Definitions:

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, and couples this electron transfer with the transfer of protons across a membrane.

Objective C

The programming language most often used to program applications to run under OS X.

Apple MacOS

The operating system developed by Apple Inc. for its line of Macintosh computers, known for its distinctive user interface.

Visual Basic

A programming language and environment developed by Microsoft for building a wide range of applications, emphasizing ease of use and rapid development.