Which of the Following Is True About Dunning's Arguments

question 106

Multiple Choice

Which of the following is true about Dunning's arguments?

• A) Dunning rejects the argument of internalization theory that it is difficult for a firm to license its own unique capabilities and know-how.
• B) Dunning suggests that to exploit such foreign resources, such as oil and other minerals, a firm must undertake licensing rather than FDI.
• C) Dunning argues that it makes sense for a firm to locate production facilities in those countries where the cost and skills of local labor is most suited to its particular production processes, since labor is not internationally mobile.
• D) Dunning's theory and its extensions help explain the imitative FDI behavior by firms in oligopolistic industries.
• E) Dunning argues that combining location-specific assets or resource endowments with the firm's own unique capabilities always requires licensing.

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Definitions:

Value-Chain Analysis

Value-Chain Analysis involves examining the steps involved in producing a product or providing a service to optimize the value delivered to customers and increase efficiency.

Core Competencies

A set of skills, talents, and activities in which a firm is particularly strong.

Porter

A person employed to carry luggage and other loads, especially in a railroad station, airport, or hotel.

Quality Standards

Established criteria or specifications for products, services, or processes to ensure they meet customer and regulatory requirements.