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s165。Appraisal165。Investment policyA Decision FrameworkHow high are transportation costs and tariffs?Is knowhow amenable to licensing?Is tight control over foreign operation required?Can knowhow be protected by licensing contract?Then licenseExportFDIFDIFDINoHighYesYesLowNoYesNoGeneral impressionnew development 165。appraisal165。information paradox164。FDI vs Portfolio investment165。in the same industry165。PatternOutline165。Capitalabundant—capitalscarce countries 164。location23 Oligopolistic reaction 165。discussion 25 Eclectic theory 165