Question: A firm considers which strategy is optimal for its globalization initiatives. It considers: 1) a Foreign Direct Investment (FDI), which has a present value of

 A firm considers which strategy is optimal for its globalization initiatives.

A firm considers which strategy is optimal for its globalization initiatives. It considers: 1) a Foreign Direct Investment (FDI), which has a present value of $5,000,000 and an initial cost of $3,500,000; 2) an exporting strategy, which has a present value of $2,000,000 and no initial costs; and finally, 3) a Licensing strategy, which has a present value of $3,500,000 and an initial cost of $500,000 If the firm uses the Net Present Value (NPV) decision rule, which option should it choose? None of the three options O FDI O Exporting Licensing O The firm should be indifferent between the three options, because they all have positive NPVs

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