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Ownership of coal and iron ore mines (e.g., in Kazakhstan and Liberia) enables the company to keep raw material costs and profit margin under control, thereby stabilizing ArcelorMittal's cash flows and profitability. These resources are most closely related to which key economic advantage according to Dunning's eclectic theory of foreign direct investment (FDI)?

User Badgy
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Ownership of coal and iron ore mines enables a company to keep raw material costs and profit margin under control, which stabilizes cash flows and profitability. These resources are most closely related to resource-seeking as a key economic advantage according to Dunning's eclectic theory of foreign direct investment (FDI).

Step-by-step explanation:

Ownership of coal and iron ore mines enables a company to keep raw material costs and profit margin under control, which stabilizes cash flows and profitability. These resources are most closely related to resource-seeking as a key economic advantage according to Dunning's eclectic theory of foreign direct investment (FDI).

In Dunning's theory, resource-seeking FDI is when a company invests in a foreign country to access and exploit specific resources that are scarce or unavailable in their home country. By owning mines in countries like Kazakhstan and Liberia, ArcelorMittal can secure a steady supply of coal and iron ore, reducing their dependence on external suppliers and maintaining control over raw material costs. This helps the company maintain steady cash flows and profitability.

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