If a firm can realize location economies by moving production elsewhere, it should avoid
A) exporting.
B) turnkey contracts.
C) licensing.
D) wholly owned subsidiaries.

Question

Quizplus · Accepted Answer

Particularly for firms pursuing global or transnational strategies, it may be preferable to manufacture where the mix of factor conditions is most favorable from a value creation perspective and to export to the rest of the world from that location.

If a Firm Can Realize Location Economies by Moving Production