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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Definitions:

Cost of Production

The total expense incurred in manufacturing a product or offering a service, including materials, labor, and overhead costs.

Teacher Absenteeism

The phenomenon where teachers frequently miss school, impacting the quality of education and student learning experiences.

Student Absenteeism

Refers to the habitual non-attendance of a student at school without valid reason.

Education

The method of enabling the acquisition of knowledge, skills, values, beliefs, and habits via different approaches.