.Internalization can help reduce opportunistic behavior in international trade.
23.Intrafirm trade refers to international transactions between two subsidiaries in a country controlled by two different MNEs.
24.Intrafirm trade enables MNEs to better coordinate cross-border activities.
25.The radical view treats FDIs as an instrument of imperialism.
26.The free market type of FDI is the most prevalent type of FDI practiced.
27.Capital inflow can help improve a host country’s balance of payments.
28.Technology spillovers are harmful to host firms and industries.
29.The demonstration effect refers to the ability of a firm to engage in an upstream stage of the value chain in a host country.
30.Repatriated earnings from profits of MNEs benefit the host country financially.
31.Investing in FDI will increase the home firm’s exports of components and services.
32.An FDI investment is not considered a zero-sum game.
33.Expropriation refers to the rewarding of property rights and incentives to MNEs from the host country.
34.MNEs encounter sunk costs when they face an obsolescing bargain with the host country.
35.FDI is more suitable if the activity is marginal and common across multiple end-user industries.
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