What is the main factor influencing foreign firms' decisions to establish a presence in China, aside from tariff rates?
Understand the Problem
The question is asking about the primary reasons why foreign companies decide to operate in China, excluding tariff rates. It presents multiple choice answers highlighting various factors such as labor costs, relationship networks, market access, and technological infrastructure.
Answer
China's large domestic market.
The main factor influencing foreign firms' decisions to establish a presence in China, aside from tariff rates, is China's large domestic market.
Answer for screen readers
The main factor influencing foreign firms' decisions to establish a presence in China, aside from tariff rates, is China's large domestic market.
More Information
China's vast population creates significant demand for goods and services, making it an attractive market for foreign businesses looking to expand their reach and increase sales.
Sources
- IMF Book on Factors Influencing FDI in China - elibrary.imf.org
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