Which Theory Explains Why a Firm Would Choose to Enter

question 91

Multiple Choice

Which theory explains why a firm would choose to enter a foreign market via FDI rather than exploit its ownership advantages internationally through other means?

• A) eclectic theory
• B) internalization theory
• C) relative factor endowments
• D) national competitive advantage

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Definitions:

Credit Column

A section in financial accounting records where increases in liabilities, revenues, and equity accounts, and decreases in assets and expenses are recorded.