Which of the Following Is True About Dunning's Arguments

question 85

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 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:

Confidence interval

A palette of statistical results, extracted from samples, aiming to encompass the unspecified value of a population attribute.

Value of t

A statistic used in hypothesis testing that compares the means of two groups to determine if they are significantly different from each other.

Average hourly income

The mean wage per hour received by workers, reflecting compensation for employment.

Margin of error

A measure indicating the range of values within which the true value is likely to fall, with a certain level of confidence.