It is rational for a firm to choose foreign direct investment over trade (producing at home and shipping the product) . (Choose 2) if average fixed costs (F/Q) are greater than per unit transportation costs. F/Q > t if the total shipping costs are less than the costs of investing in plant and equipment, total fixed costs. if the costs of investing in plant and equipment, total fixed costs, are less than total shipping costs. if F < Q * t; where F is fixed costs, Q is the quantity produced each period, and t is the per unit cost of shipping.