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Internationalization Theory and Knickerbocker Theory of FDI

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Compare and contrast internalization theory and the Knickerbocker theory of FDI. Which theory offers the best explanation of FDI and why?

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The write up discusses two important theories of FDI, the internationalization and the knickerbocker theory of FDI in 248 words.

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Compare and contrast internalization theory and the Knickerbocker theory of FDI.

The Knicker bocker theory is also called the theory of oligopolistic reaction. It assumes that markets are monopolistic and firms are oligopolistic. Here the firms seek to defend their market position and keep it secure. So they follow one another so that no competitor gets the upper hand. The pattern is one of action and reaction ...

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