Which of the following theories concerning FDI ignores alternatives such as exporting and licensing and fails to identify when it is profitable to invest abroad?
A)Investment theory
B)Multipoint competition theory
C)Eclectic paradigm
D)Product life-cycle theory

Question

Quizplus · Accepted Answer

The product life-cycle theory ignores alternatives to FDI,such as exporting and licensing,instead,simply arguing that once a foreign market is large enough to support local production,FDI will occur.This limits its explanatory power and its usefulness to business in that it fails to identify when it is profitable to invest abroad.

Which of the Following Theories Concerning FDI Ignores Alternatives Such