Ask Question
11 January, 04:38

The management team at Yum BBQ Brands has decided not to license its product because of concerns that this will create opportunities for another company to have access to their secret recipe. For this reason, the company decides that FDI is their best course of action. Which economic theory does their choice represent

+5
Answers (1)
  1. 11 January, 06:06
    0
    The choice represent internalization theory.

    Explanation:

    The outward movement of the operations of any firm can be defined as an internalization. Internalization is mainly carried out for the purpose of achieving advantages when a firm is located at foreign nations. This may be because there exists a larger market for a particular product in foreign nations.

    Making investments at foreign regions also refers to internalization. The internalization theory of the firms that are multi nationally located has investments in intangible assets that has a public good properties. In the given example represents the internalization theory choice of economic theory.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The management team at Yum BBQ Brands has decided not to license its product because of concerns that this will create opportunities for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers