Small economies are sometimes less successful than large countries in attracting FDI by raising import restrictions. What is the most likely reason for this?
A) Large economies impose higher trade restrictions.
B) Transportation costs are generally higher in small economies.
C) People in small economies are more nationalistic in their purchases.
D) Small economies frequently lack sufficient markets for large-scale production.
Question 2
When a company erects green buildings to house its new call center in Chennai, it is practicing ________.
A) sustainability
B) local responsibility
C) modern architecture
D) ecology
Question 3
Which of the following is an example of a market-seeking motive for FDI?
A) A firm wishes to gain access to raw materials.
B) A firm follows its key customers abroad to preempt other vendors from serving them.
C) A company wishes to gain access to knowledge.
D) A company intends to avoid trade barriers.
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