Which theory of FDI flows is concerned with how FDI interacts with oligopolistic industries

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Which theory is related to FDI?
What are the 4 types of FDI?
Which FDI theory depicts a firm establishing a dominant market presence in an industry?
What are the 3 types of foreign direct investment?

Abstract

This paper first presents a taxonomy of the foreign direct investment theories following the market imperfections paradigm. It then focuses on recent developments pertaining to the theory of the multinational firm, specifically the appropriability, internalization, and diversification theories. Subsequently, the multinational phenomenon is seen as the result of an international differentiation of activities and an intrafirm integration across national borders - all this within a markets and hierarchies approach. Last, the paper points to areas for future research.

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Journal of International Business Studies (JIBS) is a top-ranked peer-reviewed journal in the field of international business; its goal is to publish insightful, innovative and impactful research on international business. JIBS is multidisciplinary in scope, and interdisciplinary in content and methodology. JIBS is an official publication of the Academy of International Business. JIBS is published 9 times a year.

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The main benefits of inward FDI for a host country arise from:

A. the resource-transfer effect, the employment effect, and the balance-of-payments effect.

B. the labor-transfer effect, the technology effect, and the currency-exchange effect.

C. the cultural awareness effect, first-mover advantage effect, and economic development effect.

D. the foreign exchange reserves effect, knowledge flow effect, and the reverse resource transfer effect.

E. the employment effect, the labor-transfer effect, and the technology effect.

Production cycle theory developed by Vernon in 1966 was used to explain certain types of foreign direct investment made by U.S. companies in Western Europe after the Second World War in the manufacturing industry. Vernon believes that there are four stages of production cycle: innovation, growth, maturity and decline.

What are the 4 types of FDI?

Types of FDI.

Horizontal FDI. The most common type of FDI is Horizontal FDI, which primarily revolves around investing funds in a foreign company belonging to the same industry as that owned or operated by the FDI investor. ... .

Vertical FDI. Vertical FDI is another type of foreign investment. ... .

Conglomerate FDI. ... .

Platform FDI..

Which FDI theory depicts a firm establishing a dominant market presence in an industry?

The market power theory states that a firm tries to establish a dominant market presence in an industry by undertaking foreign direct investment.

What are the 3 types of foreign direct investment?

There are mainly two types of FDI- Horizontal and Vertical, However, two other types of foreign direct investments have emerged- conglomerate and platform FDI. HORIZONTAL FDI: under this type of FDI, a business expands its inland operations to another country.