Which of the following characterizes an MNE from a non-MNE? a. It enters foreign markets through FPI. b. It exports or imports with or without FDI. c. It enters foreign markets via non-equity modes. d. It enjoys OLI advantages.

Question

Social Studies

Marisa Liu

16 June, 19:34

Which of the following characterizes an MNE from a non-MNE? a. It enters foreign markets through FPI. b. It exports or imports with or without FDI. c. It enters foreign markets via non-equity modes. d. It enjoys OLI advantages.

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Answers (1)

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Evelyn Dodson · Answer 1

d. It enjoys OLI advantages.

Explanation:

Multinational enterprises or multinational companies are the companies which carry out businesses in more than one country, It have its presence in more than one country.

Multinational enterprises are abbreviated as MNE and non multinational enterprises are abbreviated as non-MNE.

Organizations become multinationals enterprises because they will have benefit from organizational advantages, location advantages and internalization advantages.

Thus MNE enjoys the organizational, location and internalization advantages which non MNE does not.

Hence the answer is - --

d. It enjoys OLI advantages.