Monopolistic advantage theory suggests that firms that use FDI as an internationalization strategy must own or control certain resources and capabilities not easily available to competitors.

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Monopolistic advantage theory posits that firms engage in foreign direct investment (FDI) because they possess unique advantages (such as proprietary technology, brand names, or economies of scale) that are not readily available to competing firms, allowing them to overcome the costs of operating in a foreign market.

Monopolistic Advantage Theory Suggests That Firms That Use FDI as an Internationalization