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Business, 26.10.2021 16:30 kkjones1536

General Motors is a U. S.-based multinational, but it is also one of the largest car manufacturers in Europe and South America. Which of the following represents an aspect of Dunning's OLI theory that might explain the trade-offs GM faced as it decided whether to export to those two markets or to produce in them? A. Other auto manufacturers that could handle production are GM's direct competition, making GM unlikely to choose licensing and a sharing of its manufacturing, design, and technology. B. The European market may have design preferences that are different from the U. S. market (i. e., driving on the right side of the road, fuel economy given higher gas prices, higher speed limits, etc.). This would give advantages to a production location with more direct access to the final market. C. Transportation costs are significant in the auto sector, meaning that producing close to the final market can have cost advantages. D. All of the above. E. A and C only.

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