Which Branch of Economic Theory Seeks to Explain Why Firms

question 8

Multiple Choice

Which branch of economic theory seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets?

• A) internalization theory
• B) product life-cycle theory
• C) multipoint competition theory
• D) strategic behavior theory

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Definitions:

Certification

The process of officially recognizing someone as having a particular status or being qualified to perform a certain activity.

Rights Dispute

A disagreement about the meaning of a term in a collective agreement.

Lawful Picketing

The right of workers to protest or demonstrate at a place of employment or work-related location without violating legal statutes.

Striking Employees

Workers who refuse to work as part of a collective effort to protest for better labor conditions, wages, or other employment issues.