FDI is risky because of the problems associated with:
A) sharing a valuable technological know-how with a potential competitor.
B) increase in the transportation costs, especially for those products that have a low value-to-weight ratio.
C) doing business in a different culture where the rules of the game may be very different.
D) the possibility of increase in trade barriers such as import tariffs or quotas.
E) increased production costs.

Question

Quizplus · Accepted Answer

The Answer of FDI is risky because of the problems associated with:
A) sharing a valuable technological know-how with a potential competitor.
B) increase in the transportation costs, especially for those products that have a low value-to-weight ratio.
C) doing business in a different culture where the rules of the game may be very different.
D) the possibility of increase in trade barriers such as import tariffs or quotas.
E) increased production costs.

FDI Is Risky Because of the Problems Associated With