A Firm Is More Likely to Engage in Horizontal Foreign

question 22

Multiple Choice

A firm is more likely to engage in horizontal foreign direct investment if

• A) trade costs are high and there are internal economies of scale.
• B) trade costs are low and there are internal economies of scale.
• C) trade costs are high and there are external economies of scale.
• D) trade costs are low and there are external economies of scale.
• E) trade costs are low and firms experience constant returns to scale in production.

---

Definitions:

Exercise Equipment

Tools and machines designed specifically to enhance physical fitness and performance.

Personal Preference

An individual's choice or liking, reflecting their tastes or desires.

Training Needs

The specific skills or knowledge gaps that need to be addressed for an individual or group to reach their goals efficiently.

Smooth Muscle

A type of involuntary, non-striated muscle found within the walls of organs and structures such as blood vessels, the digestive tract, and the uterus.