Which of the following concepts helps explain how location factors affect the direction of FDI?
A)The eclectic paradigm
B)The protectionism argument
C)The product life-cycle theory
D)The new trade theory
E)The infant industry argument

Question

Quizplus · Accepted Answer

The eclectic paradigm has been championed by the British economist John Dunning who argues that location-specific advantages are of considerable importance in explaining both the rationale for and the direction of foreign direct investment.

Which of the Following Concepts Helps Explain How Location Factors