A firm is more likely to engage in horizontal foreign direct investment if
A) trade costs are high and there are internal economies of scale.
B) trade costs are low and there are internal economies of scale.
C) trade costs are high and there are external economies of scale.
D) trade costs are low and there are external economies of scale.
E) trade costs are low and firms experience constant returns to scale in production.
A
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All of the following are examples of explicit cost a firm might incur except
A) the out-of-pocket expense to hire employees. B) taxes owed to the state government. C) the rental value of the warehouse space the company owns and uses for itself. D) the revenue a firm generates in using its resources.
A movement along a consumption function is caused by:
A. a change in households' real assets. B. a change in interest rates. C. changes in households' disposable incomes. D. expectations of price changes.