Dunning's theory helps explain
A. how firms try to match each other's moves in different markets to try to hold each other in check.
B. the interdependence between firms in an oligopoly that leads to imitative behavior among the rivals.
C. why a greenfield investment in a new facility is better than an acquisition of or a merger with an existing local firm.
D. the problems associated with doing business in a different culture where the rules of the game may be very different.
E. how location factors affect the direction of FDI.
Answer: E. how location factors affect the direction of FDI