According to the eclectic theory that explains FDI, an internalization advantage is the advantage of locating a particular economic activity in a specific location because of the characteristics of that location

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Business

Tiara

25 June, 20:28

According to the eclectic theory that explains FDI, an internalization advantage is the advantage of locating a particular economic activity in a specific location because of the characteristics of that location

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Allisson Bright · Answer 1

This statement is False

Explanation:

The eclectic theory is a business strategy that analyses whether a company can invest directly in foreign affairs.

A systemic economic model defines whether a business can develop overseas by means of FDI. The hybrid method is a philosophy to be practised by businesses in three phases. When determining whether to spend abroad, they follow the structure.

The theory of eclectic paradigm gives a foreign corporation three types of benefits:

1. Ownership.

2. Location.

3. Internalisation.