According to Knickerbocker's Theory

question 55

Multiple Choice

According to Knickerbocker's theory

• A) when a firm has valuable know-how that cannot be adequately protected by a licensing contract, it engages in FDI.
• B) when a firm's skills and know-how are not amenable to licensing, it usually prefers the FDI route.
• C) by placing tariffs on imported goods, governments indirectly increase the cost of exporting relative to foreign direct investment and licensing.
• D) when a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments.

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Definitions:

Helical Gears

Gears featuring teeth that are cut at an angle to the face of the gear, allowing for smoother and quieter operation compared to straight-cut gears.

Thrust Forces

Thrust forces are axial forces that act along the length of a structural element or mechanical component, pushing or pulling in a direction parallel to its axis.

Transmission Gear Ratios

The relationship between the gears in the transmission that affects speed and torque output.

Output Shaft Speed

The rotational speed of the shaft that transfers power from the transmission to the differentials in a vehicle.