Question

Why might companies choose foreign direct investment over exporting or licensing a product?

1) To have more control over the production process and distribution
2) To reduce transportation costs and trade barriers
3) To gain access to new markets and customers
4) All of the above

Answer 1

Companies choose foreign direct investment over exporting or licensing a product to have more control, reduce costs and barriers, and gain access to new markets.

Step-by-step explanation:

The primary reasons why companies might choose foreign direct investment over exporting or licensing a product are:

Considering the above points, the correct answer is 4) All of the above.