The Eclectic Paradigm

The eclectic paradigm is developed by John Dunning seeks to offer a general framework for determining the extent and pattern of both foreign-owned production undertaken by a country's own enterprises and also that of domestic production owned by foreign enterprises.

Table 1-3 identifies some of the more important configurations of the ownership, location and internalization (OLI) advantages. Some of these can best explains the initial of foreign direct investment (FDI). Others are more helpful in explaining sequential acts of foreign production.


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International Strategy And Global Strategy
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