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How does each advantage in Dunning's eclectic theory specifically affect a firm's decision regarding entry mode?

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How does each advantage in Dunning's eclectic theory specifically affect a firm's decision regarding entry mode?

by Chief of LearnyVerse
(321k points)
in Economics
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How does each advantage in Dunning's eclectic theory specifically affect a firm's decision regarding entry mode?


1 Answer

by Chief of LearnyVerse
(321k points)
0 votes

This paradigm assumes that institutions will avoid transactions in the open market if the cost of completing the same actions internally, or in-house, carries a lower price.

Lower prices is here main decisions maker to do payment by using internally mode as it keep cost of transaction low as compare to open market . As internally transaction are related to transfer of stock within the firm from one department to another.in such a way majority share still keep with company or firm not with outsider.


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