According to Internalization Theory

question 103

Multiple Choice

According to internalization theory:

• A)licensing gives a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability.
• B)licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
• C)licensing has no major drawbacks as a strategy for exploiting foreign market opportunities.
• D)a problem with licensing arises when the firm's competitive advantage is based much on its products rather than on the management, marketing, and manufacturing capabilities that produce those products.
• E)licensing is more profitable than FDI.

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Definitions:

Emotional Assumptions

Presumptions made about one's own or others' emotional states without sufficient evidence, often affecting perception and interactions.

Personal Construct Theory

A psychological theory that posits individuals interpret the world and people around them through a unique system of personal constructs.

Psychoanalysis

A method of psychological theory and therapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind and bringing repressed fears and conflicts into the conscious mind by techniques such as dream interpretation and free association.

Individual Psychology

A psychological doctrine introduced by Alfred Adler, focusing on the uniqueness of each person and their drive to fulfill their potential.