A Firm Is More Likely to Engage in Horizontal Foreign

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

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