Which Theory Explains Why a Firm Would Choose to Enter

question 91

Multiple Choice

Which theory explains why a firm would choose to enter a foreign market via FDI rather than exploit its ownership advantages internationally through other means?

• A) eclectic theory
• B) internalization theory
• C) relative factor endowments
• D) national competitive advantage

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Definitions:

Power Dissipation

The conversion of electrical energy into heat in various components of a circuit, often leading to energy loss.

Resistors

Components used in electrical circuits to limit or regulate the flow of electrical current, often for the purpose of generating heat or dropping voltage.

Current Path

The path or route that electric current follows as it flows through a circuit.

One Path

A circuit configuration where all components are arranged so that there is only a single pathway for current flow.