Which of the Following Reflects Internalization Theory

question 39

Multiple Choice

Which of the following reflects internalization theory?

• A)Licensing gives a firm the tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.
• B)Licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
• C)Licensing has no major drawbacks as a strategy for exploiting foreign market opportunities.
• D)A problem with licensing arises when the firm's competitive advantage is based much on its products rather than on the management,marketing,and manufacturing capabilities that produce those products.
• E)Licensing is more profitable than FDI.

Understand capital budgeting and its significance in long-term financial planning.

Grasp the concept of risk associated with the length of a project's lifespan.

Understand the concepts and calculation methods of dividend yield.

Grasp the relationship between par value, offering price, and capital in excess of par.

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Definitions:

Culturally Competent

indicates the ability to understand, appreciate, and interact effectively with people from diverse cultural backgrounds.

Public Administrators

Professionals who manage public agencies, set and implement policies, and provide services in government and non-profit sectors.

Nation

A large body of people united by common descent, history, culture, or language, inhabiting a particular country or territory.

Performance Measurement

The process of assessing progress towards achieving predetermined goals, typically involves quantitatively and qualitatively evaluating the efficiency and effectiveness of action.