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:

Prostaglandins

A collection of active lipid molecules that exhibit various hormone-like functions in animals.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, and is one of the principal vital signs.

Acidic Water

Water with a pH less than 7, indicating it has a higher concentration of hydrogen ions than pure water.

Phosphoglyceride

A type of glycerophospholipid which is a major component of cell membranes, composed of two fatty acids, a glycerol unit, and a phosphate group.