A firm is most likely to favor foreign direct investment over exportin

QUESTION

A firm is most likely to favor foreign direct investment over exporting when:

A. the firm wants its technological know-how to be widely disseminated.

B. the firm wishes to maintain control over its operations and business strategy.

C. the transportation costs are low.

D. there are no trade barriers.

E. the firm wants to customize its products as per the tastes and preferences of foreign consumers.

ANSWER

B