A main shortcoming of the oligopolistic reaction hypothesis of FDI is:
A) that it is based on the assumption of oligopolistic markets which do not exist in reality.
B) that it assumes oligopolistic rather than perfect competition.
C) its conclusion that FDI is self-limiting.
D) that there is no empirical support for it.
Correct Answer:
Verified
Q6: Which of the following theories of FDI
Q7: The differential rates of return hypothesis assumes:
A)
Q8: The location hypothesis explains FDI in terms
Q9: According to the eclectic theory, FDI is
Q10: A firm will expand overseas by exporting
Q12: The implications of the currency areas hypothesis
Q13: The internal financing hypothesis is more appropriate
Q14: Trade-oriented FDI:
A) generates an excess demand for
Q15: Political risk arises from:
A) changes in the
Q16: Tax policies affect the incentive to engage
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