Dunnings eclectic paradigm

Essay specific features

 

Issue:

Business

 

Written by:

Delores B

 

Date added:

June 6, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 282

 

Was viewed:

8992 times

 

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Essay content:

Firm exploits the advantages itself rather than leasing to other firms. Why internalise rather than licence to domestic firms? - Uncertainty of price - Uncertainty of quality of imports - Imperfect markets Gives advantage to control transactions itself ? Large firms internalise R&D to protect against predators and ensure good return Location specific factors: - Resources ? Human Capital, Raw Materials - Pay less tax - Political environment to conduct sensitive research - Political Stability - Markets Advantages Simplicity: ? applicable to most firms ? can explain the nature of most firms Interrelatedness of three variables and how they can be applied separately or together...
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German car industry in comparison to UK, Germany only has the O, therefore they don’t produce in UK (no L and I) Eg. UBS in London: OLI met to come to UK. Disadvantages - Too many variables, all interrelated so cant be sure which is in O, L or I. - Over – Optimistic, “can utilise all 3 and become an MNC” doesn’t take into account internal conflicts...
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