Which of the Following Observations Concerning Knickerbocker's Theory Is True

question 41

Multiple Choice

Which of the following observations concerning Knickerbocker's theory is true?

• A) It does not explain imitative FDI behavior by firms in oligopolistic industries.
• B) Economists favor this theory as an explanation for FDI compared to the internalization theory.
• C) It addresses the issue of whether FDI is more efficient than exporting or licensing for expanding abroad.
• D) It does not explain why the first firm in an oligopoly decides to undertake FDI rather than to export or license.

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