The ________ is an attempt to create and overall framework to explain why MNEs rely on FDI rather than servicing foreign markets through alternative modes.
A) OLI paradigm
B) internationalization paradigm
C) theory of competitive advantage
D) none of the above

Question

Quizplus · Accepted Answer

The OLI paradigm, also known as the eclectic paradigm, is a theory that attempts to explain why multinational enterprises (MNEs) choose foreign direct investment (FDI) over other means of serving foreign markets. It considers three factors: ownership advantages, location advantages, and internalization advantages. It is considered one of the most comprehensive frameworks for understanding FDI. The other options, internationalization paradigm and theory of competitive advantage, do not specifically focus on FDI as the chosen mode of foreign market entry.

The ________ Is an Attempt to Create and Overall Framework