Because Licensing Is More Costly and More Risky Than FDI

question 81

True/False

Because licensing is more costly and more risky than FDI, other things being equal, the theories argue that FDI is preferable to licensing.

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Definitions:

Marx and Engels

Karl Marx and Friedrich Engels were 19th-century philosophers and economists known for their development of communist theory, criticizing capitalism and proposing a classless society.

Capitalism

An economic system characterized by private or corporate ownership of goods and the means to produce them, with the distribution of goods being determined mainly through competition in the marketplace.

Social Revolution

A profound, rapid, and often violent shift in the structure and nature of a society, typically involving the redistribution of power and resources.

Marx's Analysis

A theoretical approach developed by Karl Marx that focuses on class struggle, the dynamics of capitalist societies, and the relations between labor and capital.