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Consider the notion that FDI flows are a reflection of strategic rivalry between firms in the global marketplace.What is the main limitation of the theory?
Perfect Competition
A theoretical market structure featuring a large number of firms, identical products, and free entry and exit, leading to price determination by market forces.
Monopoly
A single-seller market scenario where an exclusive product is available for purchase.
Economic Profits
The surplus generated when total revenues exceed the total costs, including both explicit and implicit costs.
Efficiency
The optimal allocation and use of resources to produce goods and services in the most cost-effective and waste-free manner.
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