OLI theory is a direct contradiction of trade theory,especially trade theory based on comparative advantage.

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The OLI theory (also known as the eclectic paradigm) is not a direct contradiction of trade theory based on comparative advantage, but rather complements it. In fact, OLI theory builds on the idea of comparative advantage by emphasizing the importance of ownership advantages (O), location advantages (L), and internalization advantages (I) in determining why firms engage in foreign direct investment (FDI) rather than just trade. Thus, both comparative advantage and OLI theory are relevant in explaining international trade and FDI patterns.

OLI Theory Is a Direct Contradiction of Trade Theory,especially Trade