The Argument That Firms Prefer FDI Over Licensing to Retain

question 41

Multiple Choice

The argument that firms prefer FDI over licensing to retain control over know-how,manufacturing,marketing,and strategy or because some firm capabilities are not amenable to licensing constitutes the

• A)comparative advantage theory.
• B)distribution theory.
• C)new trade theory.
• D)internalization theory.
• E)licensing theory.

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Definitions:

Cognitive Processing

The mental action or method of acquiring knowledge and understanding through thought, experience, and the senses.

Working Memory

A set of temporary memory stores that actively manipulate and rehearse information.

Retrieval Skills

The ability to access and bring into the conscious mind stored information from memory.

Long-term Memory

The memory component in which information is stored on a relatively permanent basis.