The location-specific advantages argument associated with John Dunning

QUESTION

The location-specific advantages argument associated with John Dunning helps explain why firms prefer FDI to licensing or to exporting.

Indicate whether the statement is true or false.

ANSWER

FALSE
The implications of the theories of FDI for business practice are straightforward. First, the location-specific advantages argument associated with John Dunning does help explain the direction of FDI. However, the location-specific advantages argument does not explain why firms prefer FDI to licensing or to exporting.