________ 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:

Long-Run Equilibrium

The condition in which all inputs and outputs in an economy or a market are fully adjusted and there are no external pressures for change.

Silk-Screened T-Shirts

T-shirts printed through a process in which ink is pressed through a screen, allowing for the creation of images and texts on fabric.

Selling Price

Selling Price is the amount of money that a seller charges for a product or service.

Economic Profits

The discrepancy between what a business earns in total revenue versus the sum of its explicit and implicit expenditures.