The ________ theory states that a firm tries to establish a dominant presence in an industry by undertaking foreign direct investment.
A)market power
B)eclectic
C)market imperfections
D)trade barriers

Question

Quizplus · Accepted Answer

The market power theory, also known as the industrial organization theory, proposes that firms invest in foreign markets to establish a dominant position and gain market power. This is achieved by increasing market share, reducing competition, and increasing profits. The other options are not directly related to this theory.

The ________ Theory States That a Firm Tries to Establish