Internationalization theory suggests that Select one: a. FDI is more likely to take place when the costs of negotiating, monitoring, and enforcing a contract with a second firm higher. b. FDI is more likely to occur when prices are high, competition is intense and lower trade barriers as well as exchange rat are strong. c. FDI occurs in developing countries only in order to boost their economies and improve the country position. d. None of the options are applicable.

Internationalization theory suggests that Select one: a. FDI is more likely to take place when the costs of negotiating, monitoring, and enforcing a contract with a second firm higher. b. FDI is more likely to occur when prices are high, competition is intense and lower trade barriers as well as exchange rat are strong. c. FDI occurs in developing countries only in order to boost their economies and improve the country position. d. None of the options are applicable.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 7QA

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