The most effective way for a foreign firm to enter an economic bloc is via foreign direct investment.

Question

Quizplus · Accepted Answer

Foreign direct investment (FDI) involves establishing a physical presence in a foreign market, such as by setting up a subsidiary or acquiring an existing local firm. This approach allows a foreign firm to tap into the resources, knowledge, and networks of the economic bloc and gain a competitive advantage over rivals who may only export to the region. FDI can also provide access to a larger customer base, lower production costs, and greater regulatory compliance. Therefore, FDI is the most effective way for a foreign firm to enter an economic bloc.

The Most Effective Way for a Foreign Firm to Enter