Question

The ________ theory states that firms undertake foreign direct investment when the features of a particular location combine with ownership and internalization advantages to make a location appealing for an investment.

Answer 1

Answer:

Eclectic Theory

Explanation:

The answer should be eclectic theory which is not available in the question though.

Eclectic theory deals about the ownership and advantages which can include proprietary information and various other ownership rights of an company.

Basically this is an approach which deals with whether a company should make FDI(Foreign direct investment) or not.

Hope this clear things up.

ThankYou.

Answer 2

Answer:

D. Eclectic theory

Explanation:

Sometimes referred to as the OLI-Model or OLI-Framework, the eclectic theory simply assumes that firms and institutions will always avoid transactions in open markets of the cost of completing the same transaction internally or in-house carries a lower price. Thus, firms undertake foreign investment when characteristics of of a location combined with ownership and internalization advantage, thereby making location appealing for an investment.