According to Internalization Theory

question 103

Multiple Choice

According to internalization theory:

• A)licensing gives a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability.
• B)licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
• C)licensing has no major drawbacks as a strategy for exploiting foreign market opportunities.
• D)a problem with licensing arises when the firm's competitive advantage is based much on its products rather than on the management, marketing, and manufacturing capabilities that produce those products.
• E)licensing is more profitable than FDI.

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Definitions:

AIDS Prevention

Strategies and methods employed to prevent the spread of HIV/AIDS, including education, condom distribution, and access to antiretroviral therapy.

Intervention Strategy

A planned action or set of actions designed to influence the outcomes in a specific situation, often used in the context of health, education, or social policy.

Situational Control

The degree to which individuals can control or influence their environment and situations to align with their goals.

Applied Social Psychology

The use of social psychology principles to solve real-world problems and improve people's lives by influencing their behavior in a positive way.