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:

Definition

A statement expressing the essential nature of something or a clear explanation of the meaning of a word or phrase.

Pure Play

A company that focuses on a single type of product or service, without diversification into other areas.

Subjective Approaches

Methods based on personal opinions, interpretations, points of view, or judgments rather than on objective or external data.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay its security holders to finance its assets.