Please answer one of the following questions:

  1. Compare and contrast these explanations of FDI: internalization theory and Knickerbocker’s theory of FDI. Which theory do you think offers the best explanation of the historical pattern of horizontal FDI?  Why?
  2. What are the strengths of the eclectic theory of FDI? Can you see any shortcomings?  How does the eclectic theory inform management practices?

Please remember to include an additional source 

Grading will be as follows:

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