According to the Eclectic Theory That Explains FDI,an Internalization Advantage

question 65

True/False

According to the eclectic theory that explains FDI,an internalization advantage is the advantage of locating a particular economic activity in a specific location because of the characteristics of that location.

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Definitions:

Equilibrium Quantity

The level of output at which the demand for a product matches its supply, marking a state of balance in the market.

Equilibrium Price

The price point in a market at which the supply of goods matches demand, leading to a stable market condition.

Labor Market

The marketplace where workers seek employment and employers seek workers, defined by supply and demand for labor.

Marginal Productivity

The additional output that is produced by using one more unit of a factor of production, keeping all other factors constant.