Question

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.

A. increase

B. reduce

C. ignore

D. not change

E. none of the above

Answer 1

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

Step-by-step explanation:

The monopolistic advantage theory suggests that firms in oligopolistic industries are likely to increase foreign direct investment when they have technical and other advantages over indigenous firms. This theory states that when a firm has unique qualities, such as superior technology, brand recognition, or economies of scale, they will choose to invest more in foreign markets to take advantage of their competitive edge.