If high tariffs are present, managers may consider other strategies, such as FDI, licensing, and joint ventures that allow the firm to operate directly in the target market, avoiding import barriers.

Question

Quizplus · Accepted Answer

High tariffs can make exporting to a country expensive, so firms may consider Foreign Direct Investment (FDI), licensing, or joint ventures as alternative strategies to enter a market directly and avoid these import barriers.

If High Tariffs Are Present, Managers May Consider Other Strategies