Import tariffs and non-tariff barriers suggest that:
A)FDI is a substitute for exporting.
B)exporting is preferable to FDI.
C)exporting is preferable to licensing local firms in the foreign markets.
D)such measures restrict the ability of MNEs' to expand their operations.

Question

Quizplus · Accepted Answer

Import tariffs and non-tariff barriers can make exporting more costly or difficult, leading firms to consider FDI as an alternative to bypass these barriers and directly access foreign markets.

Import Tariffs and Non-Tariff Barriers Suggest That