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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