The Eclectic Paradigm Specifies Three Conditions That Determine Whether a Company

question 81

Multiple Choice

The eclectic paradigm specifies three conditions that determine whether a company will internationalize via FDI. Which of the following refer(s) to one of those conditions?

• A) entrepreneurial orientation of national enterprises
• B) FDI stock
• C) availability of variable capital in the home country
• D) location-specific advantages

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Definitions:

Real GDP

A measure of the value of all goods and services produced by an economy adjusted for price changes or inflation.

Foreign Investment

The investment of capital by individuals, corporations, or governments from one country into business interests within another country.

Standard Of Living

The standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Goods And Services

The outputs offered by businesses and the economy to satisfy individual or collective needs or wants.