The ________ Theory States That When an Aspect of the Market

question 15

Multiple Choice

The ________ theory states that when an aspect of the market makes a transaction less efficient than it could be,a company will undertake foreign direct investment to internalize the transaction and thereby remove the efficiency-reducing aspect.

• A) market power
• B) eclectic
• C) international product life cycle
• D) market imperfections

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Definitions:

Illusion Of Unanimity

The perception among members of a group that everyone agrees with a decision, while in reality, some members may be silent dissenters.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Virtual Team

A group of individuals who work together from different geographical locations, connected by the Internet, email, and telephone.

Team Virtuousness

The extent to which team members adopt norms that encourage shared commitments to moral behaviour.