The key factors that are important in a firm's decision to invest overseas are
A)trade barriers, imperfect labor market, and intangible assets.
B)vertical integration, product life cycle, and shareholder diversification services.
C)profit maximization, global prestige, and competition.
D)both a) and b)

Question

Quizplus · Accepted Answer

Trade barriers and imperfect labor market are factors that affect the cost of production and distribution, while intangible assets and product life cycle are factors that affect a firm's ability to compete in a global market. Vertical integration can also provide cost savings and control over the supply chain. Shareholder diversification services and global prestige may also be factors, but they are not as crucial as the other factors mentioned. Therefore, choice D is the best answer.

The Key Factors That Are Important in a Firm's Decision