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:

Economic Function

The role served by actions, activities, or institutions in producing, distributing, and consuming goods and services within an economy.

Communism

A political and economic ideology advocating for a classless society in which the means of production are owned collectively, and goods are distributed according to need.

Farm Small Plots

The practice of cultivating crops or raising livestock on relatively small pieces of land, often associated with subsistence or small-scale farming.

Functionalist Perspective

A sociological approach that emphasizes the functions of each component of society and how these components contribute to the stability and continuity of the society.