Final answer:
John Dunning proposed that ownership advantages are crucial in explaining foreign direct investment, which involves long-term and often managerial commitments, unlike more liquid portfolio investments.
Step-by-step explanation:
John Dunning proposed that ownership advantages, such as proprietary technology, management skills, and brand names, are an important factor when explaining the nature of foreign direct investment (FDI). FDI involves purchasing more than ten percent of a company in another country and typically assumes some managerial responsibility. It has a long-term focus, as planning and executing such investments take much longer than withdrawing portfolio investments. For example, when the Belgian beer-brewing company InBev bought the U.S. beer-maker Anheuser-Busch, they had to supply euros and demand U.S. dollars, engaging in an extensive transaction that was not as quickly reversible as portfolio investments like trading government bonds.