11:20 AM Tue Mar 16 100% 5 T a. 4. An alternative to the set up of an production facility overseas is to license a local firm to manufacture the company's products. One disadvantage of this method is the establishment of a competitor with loss of future revenues to the licensing firm b. the time to market entry the degree of financial and legal risks d. the amount of the investment required c. 5 c. Which of the following is an example of reverse foreign investment for the U.S.? a. Honda builds a factory in Ohio b. Apple builds a plant in Ireland that exports to the United States British Telecom issues new stock in the United States d. American investors buy shares in Sony Which of the following is NOT a failing of the theory of comparative advantage? a. it ignores the role of uncertainty and economies of scale b. it assumes that factors of production are relatively immobile it assumes that there are no differentiated products d. it deals with trade only differentiate rather than undifferentiated products 6 c