A firm that does not want to bear the costs of establishing production facilities in a foreign country should avoid:
A)exporting.
B)FDI.
C)licensing.
D)franchising.
E)outsourcing.

Question

Quizplus · Accepted Answer

FDI, as opposed to exporting or licensing, is expensive because a firm must bear the costs of establishing production facilities in a foreign country or of acquiring a foreign enterprise.

A Firm That Does Not Want to Bear the Costs