Match the List-l with List-Il

LIST I

Theories of International Investment

LIST II

Outline of Theory

A.

Eclectic Theory

I.

FDI occurs largely in oligopolistic industries rather than in industries operating under near perfect competition

B.

Appropriability Theory

II.

Capital as an investment will move from countries where it is abundant to countries where it is scarce because the returns on investment opportunities are higher where capital is limited

C.

Market Imperfection Theory

III.

The firm should be able to keep the benefits resulting from its innovation & Research for its exclusive use

D.

Theory of Capital Movements

IV.

The framework follows three tiers-ownership, location and internalization, assuming that companies are not likely to follow through the FDI, if they can get the service or product internally and at lower costs

Choose the correct answer from the options given below.

Question

LIST I Theories of International Investment		LIST II Outline of Theory
A.	Eclectic Theory	I.	FDI occurs largely in oligopolistic industries rather than in industries operating under near perfect competition
B.	Appropriability Theory	II.	Capital as an investment will move from countries where it is abundant to countries where it is scarce because the returns on investment opportunities are higher where capital is limited
C.	Market Imperfection Theory	III.	The firm should be able to keep the benefits resulting from its innovation & Research for its exclusive use
D.	Theory of Capital Movements	IV.	The framework follows three tiers-ownership, location and internalization, assuming that companies are not likely to follow through the FDI, if they can get the service or product internally and at lower costs