The Difference Between Internalization Theory and Imitative Theory Is That

question 68

Multiple Choice

The difference between Internalization theory and imitative theory is that:

• A)internalization theory does not explain why the first firm in an oligopoly decides to undertake FDI rather than to export or license.
• B)imitative theory addresses the issue of whether FDI is more efficient than exporting or licensing for expanding abroad.
• C)most economists favor imitative theory as an explanation for FDI.
• D)no important aspect of FDI is explained by imitative theory.
• E)internalization theory addresses the issue of efficiency of FDI over exporting or licensing.

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Definitions:

Expense Report

A documented report of money spent or incurred by an employee for business-related activities, which is typically submitted for reimbursement.

Educational Purposes

Intentions or activities aimed at learning, teaching, or academic improvement.

Reimbursed

Compensated or repaid for expenses that have been incurred.

Trial Period

A set duration during which a product, service, or employee is tested or evaluated before a final decision or purchase is made.