Which of the Following Explains How Firms Can Use FDI

question 52

Multiple Choice

Which of the following explains how firms can use FDI to gain and sustain competitive advantage?

• A) monopolistic advantage theory
• B) new trade theory
• C) Leontief paradox
• D) factor proportions theory

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Definitions:

S-corporation

A special type of corporation in the U.S. that allows profits, and some losses, to be passed directly to owners’ personal income without being subject to corporate tax rates.

Double Taxation

The levying of tax by two or more jurisdictions on the same declared income, asset, or financial transaction.

Financial Theory

The study of how individuals and corporations make investment decisions, and how these decisions affect financial markets and the overall economy.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.