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:

Point

In economics, it often refers to a specific value or level on a graph, such as on a demand curve or supply curve.

Competitive Market Process

The dynamic system in which businesses compete to offer goods and services to consumers, driven by the forces of supply and demand, leading to innovations and efficiencies.

Economic Prosperity

A state of economic health and growth, typically characterized by high income levels and low unemployment.

Prices

Monetary value assigned to goods, services, or resources in the market, influenced by supply and demand dynamics.