According to the eclectic theory that explains FDI,an ownership advantage is the advantage that arises from internalizing a business activity rather than leaving it to a relatively inefficient market.

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The eclectic theory, indeed, discusses ownership advantage, but it defines it as the specific advantage firms possess that allows them to compete effectively in foreign markets, such as proprietary technology or brand reputation, rather than the advantage arising from internalizing a business activity.

According to the Eclectic Theory That Explains FDI,an Ownership Advantage