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:

Service Pack

An update package issued for software, typically containing fixes for known bugs and vulnerabilities, as well as performance enhancements and new features.

Patch

Software designed to update, fix, or improve a computer program, often addressing security vulnerabilities or bugs.

Upgrade

The process of replacing a product with a newer version or improving its features, capabilities, or performance.

Object-Oriented Programming

A programming paradigm based on the concept of "objects", which can contain data, in the form of fields or attributes, and code, in the form of procedures or methods.