As compared to exporting and licensing,FDI may be more expensive and risky.

Question

Quizplus · Accepted Answer

FDI involves setting up operations in a foreign country, which can be more expensive due to the need for capital investment, infrastructure, and labor costs. FDI also carries higher risks such as political instability, regulatory changes, and potential cultural barriers. Exporting and licensing, on the other hand, may be less expensive and risky as they involve selling products or licensing technology to a foreign market without establishing a physical presence.

As Compared to Exporting and Licensing,FDI May Be More Expensive