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:

Outboard Motors

Outboard motors are a type of propulsion system for boats, typically mounted on the outside of the hull, used to steer and power a vessel.

Opportunity Cost

The advantages that a person, investor, or company forfeits when they opt for one option instead of another.

Outboard Motors

Engines mounted on the outside of the stern of a boat, used to propel the vessel through the water.

Opportunity Cost

The cost of forgone alternatives when one option is chosen over another.