Which Theory Suggests That Trade Flows Can Be Determined by Firms

question 113

Multiple Choice

Which theory suggests that trade flows can be determined by firms making the necessary research and development expenditures?

• A) global strategic rivalry theory
• B) national competitive advantage theory
• C) international product life cycle theory
• D) country similarity theory

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Definitions:

Socioeconomic Status

An individual's or group's economic, social, and work status, often measured by income, education, and occupation.

Outgroup Homogeneity

The tendency to view members of an outgroup as more similar to each other than they actually are, often underlying stereotypes and prejudice.

Shared Beliefs

Common ideas, values, or perceptions held by a group of people, which help in forming the basis of a collective identity or culture.

Genital Stage

The final stage in Freud's psychosexual development theory, beginning in puberty, where sexual maturity is reached and sexual interests become concentrated on the genitals.