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:

Terman and Oden

Researchers known for their longitudinal study on gifted children, calling it the Genetic Studies of Genius.

Intellectual Disability

A term describing individuals who have significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values cluster around a central region.

Heritability

Degree to which the changes in some trait within a population can be considered to be due to genetic influences; the extent to which individual genetic differences affect individual differences in observed behavior; in IQ, proportion of change in IQ within a population that is caused by hereditary factors.