Multiple Choice
Why do firms locate production overseas rather than exporting finished goods?
A) Shipping costs
B) Firms seek to extend corporate control overseas
C) Imperfect factor markets
D) All of the above
Correct Answer:
Verified
Correct Answer:
Verified
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Q3: Unlike the theory of international trade or
Q4: Governments regulate international trade<br>A)to raise revenue (e.g.
Q5: Since shareholders of MNCs may indirectly benefit
Q6: The rapid increase in cross-border M&A deals
Q7: According to a recent UN survey, the
Q8: When firms undertake FDI,<br>A)they become MNCs.<br>B)they reduce
Q9: Severe imperfections in the labor market lead
Q10: The product life-cycle theory predicts that<br>A)over time
Q11: Such products as mineral ore and cement