The states that combining location-specific assets or resource endowments and the firm's own unique assets often requires FDI and it also requires the firm to establish production facilities where those foreign assets or resource endowments are located.

Eclectic paradigm

Explanation:

The eclectic paradigm of international production or OLI (ownership, location and internationalization) model is used by companies that are evaluating whether to engage in foreign direct investment (or internalization) or not.

It was developed in the 1970s and it is based on the premise that if it is cheaper for a company to produce internally, it will not seek to to produce in foreign countries. This analysis is based on three key factors:

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;