The monopolistic advantage theory suggests that firms in oligopolistic industries are likely to _______________foreign direct investment when they have technical and other advantages over indigenous firms.

Question

Quizplus · Accepted Answer

The monopolistic advantage theory argues that firms in oligopolistic industries have technical and other advantages over indigenous firms, which gives them a competitive edge in foreign markets. This advantage allows them to increase foreign direct investment in order to exploit these advantages and gain greater market power. Therefore, the correct answer is A) increase.

The Monopolistic Advantage Theory Suggests That Firms in Oligopolistic Industries