Which Theory Listed Below Is Useful in Deciding Which Mode

question 66

Multiple Choice

Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?

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

---

Definitions:

Economic Profit

The surplus generated after subtracting both direct and indirect expenses from the total revenue.

Pure Monopolist

A company or entity that is the sole provider of a particular product or service, without close substitutes, in a market.

Profit-Maximizing

The process or goal of setting production levels to achieve the highest possible profit based on current market conditions.

Total Cost

The aggregate of all costs, both fixed and variable, incurred in the production of goods or services.