2026 QUESTIONS WITH VERIFIED
ANSWERS GRADED A+
◉ Resource-Seeking FDI Answer: The goal is to get better resources
◉ Efficient Division of Labor (Cost Reduction) Answer: Different parts
of the product are made in different countries
◉ Localization (Value Increase) Answer: Companies change products to
fit local tastes
Simpler terms: Change the product so local people like it
◉ Changes of Globalization Answer: 1. Spatial distance: countries are
far away
2. Home country environment: your home country may restrict things
3. Host country environment: foreign companies mauy struggle because
they do not understand the country
◉ Liability of Foreignness Answer: Extra costs a foreign company has
that local companies do not have