Internalization Theory Seeks to Explain Why Firms Often Prefer Foreign

question 54

True/False

Internalization theory seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets.

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Definitions:

Experiential

Related to or derived from direct experience or the process of actively engaging in an activity, rather than theoretical knowledge.

Closure Quickly

The psychological need or tendency to resolve a situation or obtain an answer swiftly to relieve uncertainty or discomfort.

Limbic System

A complex system of nerves and networks in the brain, controlling basic emotions and drives.

Experiential System

An unconscious, intuitive, and automatic system of thinking.