Economics · Economic Development
What can be inferred about the concept of 'absorptive capacity' in the context of international technology transfer and domestic market integration?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It describes the structural conditions under which foreign expertise and technology can be effectively integrated into the domestic economy.✓
- 2It operates independently of the basic educational infrastructure of the host country.
- 3It means the rapid displacement of traditional local businesses by multinational corporations.
- 4It refers to the innate ability of local firms to attract initial foreign direct investment.
Correct answer
It describes the structural conditions under which foreign expertise and technology can be effectively integrated into the domestic economy.
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