The greater the pressures for cost reductions are,the most likely a firm will want to pursue some combination of:
A)licensing and joint venture.
B)exporting and wholly owned subsidiaries.
C)franchising and exporting.
D)joint ventures and wholly owned subsidiaries.

Question

Quizplus · Accepted Answer

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 Most Likely