Which of the Following Is a Condition of Dunning's Eclectic

question 20

Multiple Choice

Which of the following is a condition of Dunning's eclectic theory?

• A) The firm must own a competitive advantage that overcomes competing against foreign firms in their markets.
• B) Research and development costs must outweigh expenses related to foreign direct investment.
• C) The firm must benefit more from outsourcing a service than controlling a foreign business.
• D) Business activity must be more profitable in a domestic location than in a foreign location.

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Definitions:

Arbitration

Settlement of a labor–management dispute by a third party whose solution is legally binding and enforceable.