The resource-based view argues that internalization is a response to the imperfect rules governing international transactions.
12.Firms become MNEs because FDI provides OLI advantages that they otherwise would not obtain.
13.Dissemination risk refers to the cost that a firm has to endure even when its investment turns out to be unsatisfactory.
14.The benefit of ownership lies in the combination of equity ownership rights and management control rights.
15.Compared to licensing, FDI increases dissemination risks.
16.Compared to licensing, FDI provides more direct and tighter control over foreign operations.
17.Explicit knowledge is noncodifiable and its transfer requires hands-on practice.
18.Economic agglomeration is an example of an OLI advantage.
19.Expropriation refers to the knowledge diffused from one firm to others among closely located firms.
20.Oligopoly happens when an industry is dominated by one company.
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