Which of these theories states that firms undertake foreign direct investment when the features of a particular location combine with ownership and internalization advantages to make a location appealing for investment?
A) Market power
B) International product life cycle
C) Market imperfections
D) Eclectic

Question

Quizplus · Accepted Answer

The Eclectic theory, also known as the OLI framework, states that firms undertake foreign direct investment when there is a combination of ownership advantages (O), internalization advantages (I), and location-specific advantages or attractiveness (L). The location-specific advantages, or the features of a particular location, are what make that location appealing for investment.

Which of These Theories States That Firms Undertake Foreign Direct