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The following is NOT considered an advantage under the Monopolistic Advantage Theory?

• Economies of scale

• Superior technology

• Access to local labor

• Superior marketing knowledge

According to Dynamic Capabilities Theory, simply owning unique resources is enough to guarantee success in foreign direct investment (FDI).

• True

• False

The best explains why a firm might prefer FDI over licensing its technology to a local firm?

• To gain local market knowledge

• To avoid high transportation costs

• To maintain control over intellectual property

• To benefit from local tax incentives

The "L" in the OLI framework stands for which of the following?

• Licensing

• Location

• Labor

• Logistics

A company like Intel setting up a semiconductor plant in a country with no domestic semiconductor industry is an example of the Monopolistic Advantage Theory.

• True

• False

Which is a key component of Dynamic Capabilities Theory?

• Ownership of unique resources

• Transferability of capabilities to international environments

• Access to natural resources

• Reduction of operational costs

According to Internalization Theory, firms internalize transactions within the firm to avoid market inefficiencies.

• True

• False

Which is NOT a part of the OLI framework?

• Ownership advantages

• Location advantages

• Internalization advantages

• Exportation advantages

Internalization Theory focuses more on the "how" and "why" of FDI, while the Eclectic Theory of International Production provides a broader perspective that includes "what" and "where".

• True

• False

Which theory would most likely explain McDonald's ability to succeed in the Indian market by adapting its menu to local tastes?

• Monopolistic Advantage Theory

• Dynamic Capabilities Theory

• Internalization Theory

• Eclectic Theory of International Production