57. FDI is risky because of the problems associated with:
58. The viability of an exporting strategy is often constrained by transportation costs,
particularly of products that have a _____ and that can be produced in almost any location.
59. Which of the following is one of the limitations of exporting that leads companies to
prefer FDI over exporting?
60. A firm will favor FDI over exporting as an entry strategy when:
61. Which of the following products has a low value–to–weight ratio?
62. A firm that does not want to bear the costs of establishing production facilities in a
foreign country should avoid:
63. Governments impose quotas to limit _____.
64. The argument that firms prefer FDI over licensing to retain control over know-how,
manufacturing, marketing, and strategy or because some firm capabilities are not amenable to
licensing constitutes the _____.
65. The market imperfections approach seeks to explain:
66. According to internalization theory:
67. According to internalization theory, one of the drawbacks of licensing is that:
68. A firm is most likely to favor foreign direct investment over exporting when:
69. The strategic behavior theory:
70. The cement market in Erbia is dominated by four firms. These firms control 85 percent of
selling and buying of the domestic market. Which of the following terms explains the market
structure of cement industry in Erbia?
71. A critical competitive feature of an oligopoly is:
72. If one firm in an oligopoly cuts prices, then most likely, its competitors:
73. The interdependence between firms in an oligopoly leads to _____.
74. QFresh, a brand for energy drinks launched a healthy lime based drink without
preservatives. Immediately after this another brand, Fast Fizz, which manufactures energy drinks,
also announced the launch of a new refreshing drink without preservatives. Then Ignite, a third
brand of energy drinks, reduced the price of its apple based drink. Which of the following is most
likely to happen in this oligopolistic market set up?
75. A(n) _____ arises when two or more enterprises encounter each other in different regional
markets, national markets, or industries.
76. The idea behind multipoint competition is to ensure that: