The _____ suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are located.

Question

Quizplus · Accepted Answer

The eclectic paradigm is also known as the OLI framework (Ownership, Location, and Internalization), and it suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are located. Therefore, the correct answer is D. The other options are not related to this concept. The product life cycle theory explains how a product moves through different stages and affects international trade. The strategic behavior theory deals with the strategic decisions of firms in a highly interdependent market. The multipoint competition theory explains how firms compete with each other across multiple markets.

The _____ Suggests That a Firm Will Establish Production Facilities