The Possibility That a Company Will Create a Future Competitor

question 17

True/False

The possibility that a company will create a future competitor by charging another company for access to its knowledge is a market imperfection that can encourage foreign direct investment.

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Definitions:

Aseptic Technique

Practices and procedures performed under sterile conditions aimed at minimizing the risk of infection.

Serrations

Notches or jagged edges found on tools, knives, or some types of leaves, designed to improve function or efficiency.

Contamination

The undesirable introduction of impurities or harmful substances into or on to a clean or pure environment, making it unsafe.

Microorganisms

Tiny living organisms, such as bacteria, viruses, fungi, and algae, that can be seen only with a microscope.