When a government sees that local industry is threatened by imports,it can threaten to erect import barriers to stop or reduce these imports.This is an example of a ________ driver of international business activity.
A) technological
B) market
C) political
D) cost
E) competitive

Question

Quizplus · Accepted Answer

Even with governmental actions to open their economies to international business, concerns about protecting markets from potential protectionism by host country markets may still remain a motive for a company to increase the level of its international business activity. For example, when a government sees that local industry is threatened by imports, it may erect import barriers to stop or reduce these imports. Even threats to do this can be sufficient to induce the exporter to invest in production facilities in the importing country.

When a Government Sees That Local Industry Is Threatened by Imports,it