The ________ Theory States That a Firm Tries to Establish

question 51

Multiple Choice

The ________ theory states that a firm tries to establish a dominant market presence in an industry by undertaking foreign direct investment.

• A) market power
• B) eclectic
• C) market imperfections
• D) trade barriers

---

Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Scarcity

A situation where limited resources are insufficient to satisfy all wants and needs.

Unlimited Income

A theoretical concept indicating there is no upper limit to an individual's or entity's income.

Production

The process of creating goods or services using inputs such as labor, raw materials, and machinery.