New markets, new resources, and improved efficiency are the three main motives for firms to enter foreign markets through FDI.

Question

Quizplus · Accepted Answer

Firms engage in Foreign Direct Investment (FDI) primarily to access new markets, acquire new resources (such as raw materials or technology), and improve efficiency by taking advantage of lower production costs or advanced production technologies in foreign countries.

New Markets, New Resources, and Improved Efficiency Are the Three