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

---

Definitions:

Predicting

The process of making informed guesses about the future based on current information or past experience.

Behaviors

Actions, reactions, or manners of acting or controlling oneself, often in response to various stimuli or situations.

Cultural Constructs

Shared belief systems, norms, and values that are socially constructed and vary widely between different societies and communities.

Masculinity

A set of attributes, behaviors, and roles associated with boys and men as socialized in a given society.