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Question
which type of advantage refers to the mode of entry abroad? a. ownership, or firm - specific b. environmental c. internalization d. locational, or country - specific
The internalization advantage in the OLI (Ownership - Location - Internalization) framework by John Dunning refers to the mode of entry abroad. It explains why a firm chooses to internalize its operations (e.g., through FDI rather than licensing) when going international. Ownership advantage (a) is about firm - specific assets, environmental (b) is a more general and not a standard term in this context, and locational (d) is about country - specific advantages.
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C. internalization