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:

Variable Overhead

Costs that vary with the level of production output, such as utilities for machines and indirect materials.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Variable

An element, feature, or factor that is liable to vary or change.

Machine Hours

A measure of production time, calculated by the total hours machines are in operation over a set period.