A firm primarily seeks to enhance economies of scale and economies of scope through FDI. This reflect the firm's ________ motive.
A) market-seeking
B) resource-seeking
C) efficiency-seeking
D) strategic asset-seeking.

Question

Quizplus · Accepted Answer

The desire to enhance economies of scale and economies of scope through FDI indicates an efficiency-seeking motive. This suggests that the firm is looking to increase production efficiency and reduce costs through the utilization of larger-scale production facilities and the sharing of resources across different markets. Market-seeking refers to the desire to enter new markets for the purpose of increasing sales, while resource-seeking involves accessing new sources of raw materials or other important resources. Strategic asset-seeking involves seeking to acquire valuable assets such as technology or intellectual property.

A Firm Primarily Seeks to Enhance Economies of Scale and Economies