Questions: Multiple Choice Question Knickercker argued that firms follow the same imitative behavior in their FDI strategies as oligopolies follow. monopolies franchises oligopolies licensees

The answer is: oligopolies.

Explanation for each option:

1. Monopolies: This option is incorrect. Monopolies refer to market structures where a single firm dominates the market. Since there is no competition, monopolies do not need to imitate the behavior of other firms in their Foreign Direct Investment (FDI) strategies.

2. Franchises: This option is incorrect. Franchises are a method of business expansion where a firm allows others to operate using its brand and business model. While franchises may follow certain strategies set by the parent company, they do not typically engage in imitative behavior in the context of FDI.

3. Oligopolies: This option is correct. Knickerbocker's theory of FDI suggests that firms in oligopolistic industries (where a few firms dominate the market) tend to follow each other's moves in order to maintain competitive parity. This imitative behavior is a strategic response to the actions of competitors.

4. Licensees: This option is incorrect. Licensees are firms that obtain the rights to produce and sell another company's products. Licensing is a form of market entry strategy, but it does not inherently involve the imitative behavior described by Knickerbocker in the context of FDI.

In summary, Knickerbocker argued that firms in oligopolistic markets tend to follow each other's FDI strategies to remain competitive.