Firms undertake FDI at _____________ is Raymond Vernon's view of foreign direct investment.

Question

Quizplus · Accepted Answer

According to Raymond Vernon's theory, firms undertake FDI at particular stages in the life cycle of a product they have pioneered. This theory is known as the product life cycle theory of FDI. The theory suggests that a firm will first establish production facilities in its home country and then, as the product becomes more accepted, establish production facilities in other countries to gain better access to markets and lower production costs. Therefore, the best choice is D.

Firms Undertake FDI at _____________ Is Raymond Vernon's View of Foreign