Which of the following most likely encourages firms to localize?
A)increasing tariffs at the host country
B)providing domestic subsidies
C)demand for undifferentiated, standardized products
D)need for economies of scale

Question

Quizplus · Accepted Answer

Providing domestic subsidies encourages firms to localize because it reduces the cost of production in the host country, making it more attractive for firms to locate there.

Which of the Following Most Likely Encourages Firms to Localize