Which of the Following Is NOT One of the Four

question 110

Multiple Choice

Which of the following is NOT one of the four main theories that attempts to explain why companies engage in foreign direct investment?

• A) International product life cycle theory
• B) Market imperfections theory
• C) Eclectic theory
• D) Mercantilism

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Definitions:

Firm's Profits

The financial gain achieved by a company after subtracting all its costs from its total revenues.

Capital

Economic resources used in the production of goods, including physical assets like machinery, buildings, or human skills and knowledge.

Financial Assets

Assets that derive their value from a contractual claim, such as stocks, bonds, and bank deposits.

Bonds

Financial instruments issued by corporations, governments, or other entities to finance projects or operations, representing a loan from the investor to the issuer that is to be repaid with interest.