In general,foreign direct investment is less expensive and less risky than either licensing or exporting.

Question

Quizplus · Accepted Answer

Foreign direct investment often involves higher upfront costs and more risks due to extensive market research and infrastructure development, as well as potential political and economic instability in the host country. Licensing and exporting, on the other hand, typically require lower investment and involve lower risks as they do not involve ownership and control of foreign operations.

In General,foreign Direct Investment Is Less Expensive and Less Risky