Which of the following observations was made by Raymond Vernon?
A) Firms undertake FDI at particular stages in the life cycle of a product they have pioneered.
B) Firms will favor exporting over FDI as an entry strategy when trade barriers are high.
C) FDI is prompted by imitative behavior in oligopolistic industries.
D) Impediments to the sale of know-how increase the profitability of FDI relative to licensing.

Question

Quizplus · Accepted Answer

Raymond Vernon's product life-cycle theory is used to explain FDI. Vernon's view is that firms undertake FDI at particular stages in the life cycle of a product they have pioneered.

Which of the Following Observations Was Made by Raymond Vernon