A company has the choice of either producing at home and exporting finished goods or establishing factories in its export markets.
Other things being equal, what is most likely to encourage the company to set up a plant in another country?
High tariffs are imposed on manufactured imports by most countries.
2 )
Investment grants are available to companies producing in the home market.
3 )
Labour and other costs tend to be the same in all countries.
4 )
Restrictions are placed on companies wishing to invest in other countries.
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