The Argument That Firms Prefer FDI Over Licensing to Retain

question 41

Multiple Choice

The argument that firms prefer FDI over licensing to retain control over know-how,manufacturing,marketing,and strategy or because some firm capabilities are not amenable to licensing constitutes the

• A)comparative advantage theory.
• B)distribution theory.
• C)new trade theory.
• D)internalization theory.
• E)licensing theory.

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Definitions:

Tremors

Involuntary, rhythmic muscle movements involving oscillations or shaking of one or more body parts.

Intoxicated

The condition of having physical or mental control markedly diminished by the effects of alcohol or drugs.

Alcohol Abuse

A pattern of drinking that results in harm to one's health, interpersonal relationships, or ability to work.

Liver Disease

A broad category of conditions, disorders, and infections that affect the liver's ability to function properly.