Which of the Following Is a Major Drawback of Using

question 53

Multiple Choice

Which of the following is a major drawback of using Knickerbocker's theory in explaining FDI?

• A) It ignores the fact that firms invest in a foreign country when demand in that country will support local production.
• B) It does not explain why the first firm in an oligopoly decides to undertake FDI rather than to export or license.
• C) It fails to identify when it is profitable to invest abroad.
• D) It ignores the fact that licensing as an entry strategy has its limitations.

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Definitions:

Part-time Workers

Individuals employed in jobs that have fewer hours than a full-time position, typically offering lower pay and fewer benefits.

Permanent Workforce

Employees who are hired on an indefinite basis, offering stability and long-term employment benefits within an organization.

Flextime Employees

Workers who have flexible work schedules, allowing them to vary their arrival and departure times as long as they complete their working hours.

Line Managers

Managers who directly contribute to producing the organization’s goods or services.