Question

Dunning's eclectic theory of international production states that if a firm is going to invest in production facilities abroad, it must have the following kinds of advantages:

A. ownership specific, location specific, and internationalization.

B. strategic, organizational, and technological.

C. political, technological, and human resource.

D. technological, financial, and human resource.

E. none of the above.

Answer 1

Dunning's eclectic theory of international production states that if a firm is going to invest in production facilities abroad, it must have ownership specific, location specific, and internationalization advantages.

Step-by-step explanation:

Dunning's eclectic theory of international production states that if a firm is going to invest in production facilities abroad, it must have the following kinds of advantages:

1. Ownership specific: This refers to the firm's unique assets and capabilities that give it a competitive advantage over other firms. For example, a brand name or patented technology.
2. Location specific: This refers to the advantages offered by a particular location, such as access to resources, infrastructure, or a skilled labor force.
3. Internationalization: This refers to the firm's ability to effectively operate and compete in global markets.

Therefore, the correct answer is A. ownership specific, location specific, and internationalization.