Knickerbocker's concept of multipoint competition enhances the strategic behavior theory by making sure that
A) a rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere.
B) the competitors cooperate with each other to establish a cartel.
C) no other competitors can enter the market unless they resort to licensing or franchising with the initial pioneers.
D) growing technologies or business methods in new markets are transferred to established markets.
E) the firms in an industry prefer FDI over licensing or exporting.

Question

Quizplus · Accepted Answer

Multipoint competition suggests that firms will compete in multiple markets to prevent a rival from dominating one market and using its profits to attack in other markets.

Knickerbocker's Concept of Multipoint Competition Enhances the Strategic Behavior Theory