Which of the following characterizes an MNE from a non-MNE?
A) It enters foreign markets via non-equity modes.
B) It exports or imports with or without FDI.
C) It enjoys OLI advantages.
D) It enters foreign markets through FPI.

Question

Which of the following characterizes an MNE from a non-MNE? 
A) It enters foreign markets via non-equity modes. 
B) It exports or imports with or without FDI. 
C) It enjoys OLI advantages. 
D) It enters foreign markets through FPI.

Quizplus · Accepted Answer

MNEs, or multinational enterprises, are distinguished from non-MNEs by the possession of OLI advantages, which include ownership advantages, location advantages, and internalization advantages. MNEs use these advantages to enter and operate in foreign markets through a variety of modes, including both equity modes (such as joint ventures and wholly-owned subsidiaries) and non-equity modes (such as exporting and licensing). FDI (foreign direct investment) is a common form of equity mode used by MNEs, but it is not the only way that MNEs operate in foreign markets. FPI (foreign portfolio investment) is a type of investment in which investors hold securities such as stocks and bonds, but it is not typically associated with MNEs.

Which of the Following Characterizes an MNE from a Non-MNE