Identify the Theory That Seeks to Explain Why Firms Often

question 21

Multiple Choice

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

• A) Internalization theory
• B) Product life-cycle theory
• C) Perfect markets theory
• D) Random walk theory

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Definitions:

Observational Learning

A form of learning that occurs through observing the behavior of others and the consequences of that behavior.

Reinforcement

In operant conditioning, any event that strengthens, or increases the frequency of, a desired behavior.

Strengthen Behaviour

The process of increasing the likelihood that a behavior will be repeated through reinforcement or reward.

Learning Theorists

Scholars and psychologists who study and develop theories about how people acquire knowledge, skills, attitudes, and behaviors.