John Dunning,a champion of the eclectic paradigm,argues that:
A)the firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market.
B)when a firm that is part of an oligopolistic industry expands into a foreign market,other firms in the industry will be compelled to make similar investments.
C)combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI.
D)impediments to the sale of know-how increase the profitability of FDI relative to licensing.

Question

Quizplus · Accepted Answer

According to John Dunning, the eclectic paradigm argues that combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI. This means that a firm must invest in foreign countries to take advantage of resources or assets that are specific to that location and cannot be replicated elsewhere. This approach allows the firm to leverage its own competitive advantages with complementary assets or resources in the foreign market, thereby enhancing its overall competitiveness.

John Dunning,a Champion of the Eclectic Paradigm,argues That