Localization strategy makes sense when pressures are high for local responsiveness, but low for cost reductions.( )
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Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are location advantages.( )
When higher cost suppliers within the free trade area replace lower cost external suppliers there is trade diversion. ( )
Which of the following is not a cost of outward FDI for home countries?()
A. the initial capital outflow required to finance the FDI
B. when FDI is a substitute for direct exports
C. gains from learning valuable skills from foreign markets
D. the effect on employment when FDI is a substitute for domestic production
____ refers to the time and effort spent learning the rules of a new market.
A. First mover advantages
B. Strategic commitments
C. Pioneering costs
D. Market entry costs