If high tariffs are present, managers should 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

This statement is true as high tariffs can make importing goods into a foreign market more expensive and less competitive. This is when other strategies such as foreign direct investment (FDI), licensing, and joint ventures will be more beneficial for the firm to operate directly in the target market, avoiding import barriers.

If High Tariffs Are Present, Managers Should Consider Other Strategies