As transportation costs or trade barriers increase, exporting becomes unprofitable, and the choice is between FDI and
D) resource endowments.
The ________ and Knickerbocker's theory of FDI tend to be less useful from a business perspective because they are descriptive rather than analytical.
A) noninterventionist theory
B) internalization theory
C) eclectic paradigm
D) product life-cycle theory
Licensing would be a good option for firms in which of the following industries?
A) It would be a good option in high-technology industries in which protecting firm-specific expertise is of paramount importance.
B) It would be a good option in global oligopolies, in which competitive interdependence requires that multinational firms maintain tight control over foreign operations.
C) It would be a good option in industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations.
D) It would be a good option in fragmented, low-technology industries in which globally dispersed manufacturing is not an option.