The greater the pressures for cost reductions are,the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries.

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The greater the pressures for cost reductions are,the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries.By manufacturing in those locations where factor conditions are optimal and then exporting to the rest of the world,a firm may be able to realize substantial location and experience curve economies.

The Greater the Pressures for Cost Reductions Are,the More Likely