AGB 302 FINAL PAPER 2026 FULL
SOLUTION VIEW AHEAD GUARANTEED TO
PASS
⩥Greenfield Investment. Answer: Establishing a new operation in a
foreign country
⩥flow of FDI. Answer: the amount of FDI undertaken over a given time
period (normally 1 year)
⩥Stock of FDI. Answer: refers to the total accumulated value of foreign-
owned assets at a given time
⩥Outflows of FDI. Answer: Flow of foreign direct investment out of a
country
⩥Inflows of FDI. Answer: Flow of foreign direct investment into a
country
⩥Eclectic Paradigm (Dunning). Answer: attempts to combine the two
other perspectives into a single holistic explanation of foreign direct
investment
, ⩥Exporting. Answer: involves producing good at home and then
shipping them to the receiving country for sale
⩥licensing. Answer: involves granting a foreign entity the right to
produce and sell the firms products in return for a royalty fee on every
unit sold
⩥Internalization Theory (market imperfections). Answer: explains why
firms often prefer FDI over licensing as a strategy for entering foreign
markets
⩥Oligopoly (FT Knickerbocker). Answer: A market structure in which a
few large firms dominate a market
⩥Knickerbocker Theory. Answer: Suggest that much FDI is explained
by imitative Behavior by rival firms in an oligopolistic industry
Knickerbocker Argue that the same kind of imitative Behavior criticizes
FDI And to embrace the concept of multi-point competition
⩥Multipoint Competition. Answer: arises when two or more enterprises
encounter each other in different regional markets, national markets, or
industries
SOLUTION VIEW AHEAD GUARANTEED TO
PASS
⩥Greenfield Investment. Answer: Establishing a new operation in a
foreign country
⩥flow of FDI. Answer: the amount of FDI undertaken over a given time
period (normally 1 year)
⩥Stock of FDI. Answer: refers to the total accumulated value of foreign-
owned assets at a given time
⩥Outflows of FDI. Answer: Flow of foreign direct investment out of a
country
⩥Inflows of FDI. Answer: Flow of foreign direct investment into a
country
⩥Eclectic Paradigm (Dunning). Answer: attempts to combine the two
other perspectives into a single holistic explanation of foreign direct
investment
, ⩥Exporting. Answer: involves producing good at home and then
shipping them to the receiving country for sale
⩥licensing. Answer: involves granting a foreign entity the right to
produce and sell the firms products in return for a royalty fee on every
unit sold
⩥Internalization Theory (market imperfections). Answer: explains why
firms often prefer FDI over licensing as a strategy for entering foreign
markets
⩥Oligopoly (FT Knickerbocker). Answer: A market structure in which a
few large firms dominate a market
⩥Knickerbocker Theory. Answer: Suggest that much FDI is explained
by imitative Behavior by rival firms in an oligopolistic industry
Knickerbocker Argue that the same kind of imitative Behavior criticizes
FDI And to embrace the concept of multi-point competition
⩥Multipoint Competition. Answer: arises when two or more enterprises
encounter each other in different regional markets, national markets, or
industries
