In Which of the Following Situations Does the Internalization Theory

question 25

Multiple Choice

In which of the following situations does the internalization theory recommend FDI as opposed to licensing?

• A) When the firm has know-how that can be adequately protected by a licensing contract
• B) When the firm produces products that have a low value-to-weight ratio
• C) When a firm's skills and know-how are amenable to licensing
• D) When the firm needs tight control over a foreign entity

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Definitions:

Demeaning Nature

Refers to the act or attitude of reducing the value or worth of something in a disrespectful manner.

Abusive Supervision

The bullying of subordinates by managers.

Employee Well-Being

The overall physical, mental, and emotional state or condition of an employee that contributes to their satisfaction and effectiveness at work.

Role Models

Individuals admired for their ways of behaving or achieving success, who influence others to emulate them.