The monopolistic advantage theory suggests the following except _______.
A) owning firm-specific advantages enables MNCs to profit from FDI
B) FDI allows MNCs to exploit monopolistic advantages through direct control
C) FDI allows MNCs to develop new competitive advantages in overseas markets
D) monopolistic advantages can be attained via FDI but not portfolio investment

Question

Quizplus · Accepted Answer

The monopolistic advantage theory primarily focuses on how multinational corporations (MNCs) use their firm-specific advantages to engage in foreign direct investment (FDI) and exploit their existing monopolistic advantages. It does not inherently address the development of new competitive advantages in overseas markets, which is more aligned with dynamic capabilities and innovation theories.

The Monopolistic Advantage Theory Suggests the Following Except _______