In Which of the Following Situations Does the Internalization Theory

question 74

Multiple Choice

In which of the following situations does the internalization theory recommend FDI as opposed to licensing?

• A) when the firm has know-how that can be adequately protected by a licensing contract
• B) when the firm produces products that have a low value-to-weight ratio
• C) when a firm's skills and know-how are amenable to licensing
• D) when the firm needs tight control over a foreign entity

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Definitions:

Hue

A basic property of color, determined by the specific wavelength of light, perceived as the name of the color, such as blue, green, or red.

Binocular Cue

Visual information taken from both eyes that enables perception of depth, distance, and 3D structure of objects.

Convergence

The process or state of different elements coming together or merging towards a unified or common point.

Retinal Disparity

The slight difference in the visual images that each eye perceives because of the different angles in which each eye views the world.