________ Theory Suggests That Firms Using FDI as an Internationalization

question 88

Multiple Choice

________ theory suggests that firms using FDI as an internationalization strategy must own or control certain resources and capabilities not easily available to competitors.

• A) Factor proportions
• B) Monopolistic advantage
• C) Internalization
• D) Absolute advantage

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Definitions:

Savers

Individuals or entities that set aside funds rather than spending them, typically to accumulate wealth for future use.

Creditors

Creditors are individuals or institutions to whom money is owed by another individual or entity, typically resulting from a loan or credit extended.

Debtors

Individuals or entities that owe money to another party, typically as a result of borrowing funds.

Nominal Rate

The interest rate as stated without adjusting for inflation, representing the actual percentage that borrowers pay and lenders receive.