Respuesta :
Location is the advantage that the firm enjoys in case of setting up of a manufacturing plant.
What benefit does FDI have over licencing, specifically?
FDI offers more direct and exact control over international enterprises than licencing does. Explicit knowledge cannot be codified, hence it must be transferred through practise. An illustration of an OLI benefit is economic agglomeration. Firm copies its domestically based activities in the host nation at the same value chain stage as horizontal FDI. Vertical FDI: In the host nation, a firm moves upstream (backward) or downstream (forward) at various stages of the value chain. A multinational company makes a vertical foreign direct investment when it buys a business that serves as a distributor or a supplier. When a corporation starts a similar operation or business strategy in another nation, this is known as horizontal FDI.
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