_______________,A Branch of Economics,seeks to Explain Why Firms Often Prefer

question 63

Multiple Choice

_______________,a branch of economics,seeks to explain why firms often prefer foreign direct investment to licensing as a strategy for entering foreign markets.

• A) Comparative advantage theory
• B) Globalization theory
• C) Cosmopolitan theory
• D) Internalization theory
• E) Patterns of FDI

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Definitions:

Risk Propensity

The inclination or tendency of an individual or organization to take or avoid risks.

Problem Framing

The way a problem is perceived or structured, heavily influencing the solutions considered.

Unfavorable Situations

Circumstances or conditions that are disadvantageous, challenging, or pose obstacles to achieving goals.

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization to fulfill its objectives.