A firm will favor FDI over exporting as an entry strategy when: A. th

QUESTION

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.

ANSWER

B