MNE possesses monopolistic advantages enabling it to operate subsidiaries abroad more profitably than a local competing firm is the example of which theory?
A) Internalization theory
B) Portfolio theory
C) Monopolistic Advantage theory
D) none of the above

Question

Quizplus · Accepted Answer

The given example describes the Monopolistic Advantage theory which suggests that the unique advantages possessed by a multinational enterprise over local firms, such as superior technology or brand recognition, allow them to operate more profitably in foreign subsidiaries. The theory emphasizes that these advantages cannot be easily replicated by domestic firms, making the multinational enterprise a dominant player in the foreign market.

MNE Possesses Monopolistic Advantages Enabling It to Operate Subsidiaries Abroad