The strategic behavior theory is used to
A) explain the constraints of exporting and licensing.
B) explain the challenges faced by a firm during the establishment of a new operation in a foreign country.
C) explain the patterns of FDI flows based on the idea that FDI flows are a reflection of strategic rivalry between firms in the global marketplace.
D) review the theories that have been used to explain foreign direct investment.
E) explain how greenfield investments are better than FDI at determining strategic competition and dominance.

Question

Quizplus · Accepted Answer

Strategic behavior theory explains FDI flows as a result of strategic rivalry among firms, where companies engage in FDI to maintain or enhance their competitive position in the global market.

The Strategic Behavior Theory Is Used to