This theory advocates that the available external market does not provide an efficient environment in which the firm can profit by using its technology or production resources.
A) Monopolistic Advantage theory
B) Internalization theory
C) both A & B
D) none of above

Question

Quizplus · Accepted Answer

The statement describes the Internalization theory, which suggests that a firm may choose to enter and expand into foreign markets by internalizing transactions within the firm rather than relying on the external market. Monopolistic Advantage theory talks about a firm's competitive advantage due to its unique products or technology. Therefore, option A is incorrect. Option C is incorrect as it indicates both theories, but only one theory is relevant to the given statement. Option D is also incorrect as the statement is related to a theory.

This Theory Advocates That the Available External Market Does Not