The Argument That Firms Prefer FDI Over Licensing to Retain

question 33

Multiple Choice

The argument that firms prefer FDI over licensing to retain control over know-how,manufacturing,marketing,and strategy or because some firm capabilities are not amenable to licensing constitutes the _____.

• A)comparative advantage theory
• B)distribution theory
• C)new trade theory
• D)internalization theory

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Definitions:

Constitution

The supreme law of the United States, adopted in 1787, outlining the nation's government structure, its fundamental principles, and the rights of its citizens.

Vulnerable Minorities

Groups within society that are at a higher risk of facing discrimination, poverty, and other social injustices due to various factors.

Eric Foner

An American historian who is known for his work on the history of the American Civil War era, focusing on the Reconstruction period after the war.

Abolish

To formally put an end to a system, practice, or institution, such as slavery or the death penalty.