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To form a unified theory of Foreign Direct Investment- According to John Dunning, FDI will occur when these conditions are satisfied:

There is an Ownership advantage- the foreign firm must own some unique competitive advantage that overcomes the disadvantages of competing with the local firms on their home turfs.

There is a Location advantage: Undertaking the business activity must be more profitable in a foreign location than undertaking it in a domestic location.

There is a Internalization advantage: the firm must benefit more from controlling the foreign business activity than from hiring an indepedent local company to provide the service.

source: international business- a managerial prespective

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Q: What is Dunning's eclectic theory of Foreign direct investment?
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