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Incremental Hypothesis

Definition of 'Incremental Hypothesis'

This suggests that the firms tend to gradually build their degree of involvement in foreign markets, beginning with exporting and culminating in Foreign Direct Investment.

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Related Terms

Rappaports Value Drivers Efficient Market Hypothesis Efficient Stock Market Incremental Fixed Capital Investment Marginal Cost of Capital Convergence Hypothesis Expectations Hypothesis of the Term Structure of Interest Rates (Yield Curve)Liquidity-Preference Hypothesis of the Term Structure of Interest Rates Market Segementation Hypothesis of the Term Structure of Interest Rates

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