This theory is more relevant to the manufacturer's initial entries into foreign markets than to the MNE's that have FDI already in place.
A) Internalization theory
B) Monopolistic Advantage theory
C) Product Life Cycle theory
D) none of the above

Question

Quizplus · Accepted Answer

The Product Life Cycle theory suggests that a product goes through stages of introduction, growth, maturity, and decline. During the introduction stage, a company typically enters foreign markets with its initial products. As the theory is more relevant to the manufacturer's initial entries into foreign markets, it is not as applicable to MNEs that already have FDI in place.

This Theory Is More Relevant to the Manufacturer's Initial Entries