The monopolistic advantage theory states that:

Question

Quizplus · Accepted Answer

The monopolistic advantage theory suggests that firms with technical advantages in oligopolistic industries are more likely to engage in foreign direct investment (FDI) in order to exploit their advantages in foreign markets. This is because they face less competition in those markets and can sustain their monopolistic position, leading to higher profits. Therefore, option B is the correct choice as it accurately reflects the theory. None of the other options accurately reflect the monopolistic advantage theory.

The Monopolistic Advantage Theory States That