The OLI Paradigm Is an Attempt to Create a Framework

question 28

Multiple Choice

The OLI paradigm is an attempt to create a framework to explain why MNEs choose ________ rather than some other form of international venture.

• A) licensing
• B) joint ventures
• C) foreign direct investment
• D) strategic alliances

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Definitions:

Regulatory Forces

External forces including laws, regulations, and government actions that influence or restrict business operations, often in the interest of public safety or fair competition.

Competitive Pressures

The influence exerted by competing businesses in the same industry, which drives companies to improve products, services, and operations.

Economic Growth Rate

The rate at which the gross domestic product (GDP) of an economy increases over a specific period, indicating the health and prosperity of the economy.

Industry Growth

The increase in the size and output of an industry over time, typically measured in terms of revenue, employment, or output.