Eclectic paradigm

: “ While Dunning’s OLI model provides a general paradigm for explaining the determinants of Foreign Direct Investment , its use in designing an international corporate strategy , as defined by Head is limited and requires more specific models for the task ” B.Sc. International Management in MENA Coursework assignment 2014 - 2015 The Eclectic model , or most commonly know as the OLI model is

Eclectic paradigm is a theory that provides a three-thiered framework for a company to follow when determining if it is beneficial to pursue direct foreign investment , the eclectic paradigm is assumed that institutions will avoid transactions in the open market when internal transactions carry lower costs in order for a direct investment in a foreign country to be successful. The Eclectic paradigm is also known as the OLI model .The OLI stands for ownership, Location and internationalization , 3

3. Internationalization of production 3.1. OLI Paradigm There are different ways in which companies can expand their activities to gain some sort of competitive advantage. Internationalization is understood as the process of incremental involvement in a country different from the one where business usually happens. The reasons for companies to seek international expansion vary (Morschett 2007): • Resource seeking: the MNC is motivated to expand its operations on the supply side to other countries

1.2.3 Uppsala Model/Internationalisation Process However, “The Uppsala Internationalisation Model” (Johanson & Vahlne, 1977, 1990), argues that organisations grow through incremental or gradual process by gradually increasing their internationalisation activities as they gain more experience and learning. Organisation they believe commit more resources as they gain more knowledge a certain market by first investing in close psychic distant market, (Banalieva & Santoro, 2009; B Elango, 1998; Balasubramanian

two theories; Dunning’s OLI paradigm and Vernon’s Product Life Cycle theory in an attempt to identify which theory may offer a stronger understanding for manufacturing FDI from developed country firms to developing countries. (Wang, 2015) FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002) Dunning’s OLI paradigm (1976) is used to support

However, while the OLI paradigm centers around a single expansion decision, the Uppsala model views internationalisation as a gradual process with an incremental increase of knowledge of the target region and subsequent commitments in that region. Hence, internationalisation occurs faster in the OLI paradigm. Another difference between the two models is their respective focuses. The OLI paradigm focuses more inward, on the attributes of the expanding company

Eclectic Paradigm: - The Eclectic paradigm and transaction cost analysis – It is the length, types and pattern of international production and it is founded on the juxtaposition of the ownership-specific advantages of the company considering foreign production. The propensity

to this report, The Eclectic Paradigm of International Production theory will be put forward at the very start to analysis the cause and the way for emergence in the first ten years of Lee Kum Kee’s international business from 1920 to 1930, and then depict the competition in the industry at the beginning of 19th Century by using Andy Grove 's existing competitor analysis model. This is followed by the analysis of core competitiveness of the Lee Kum Kee. 2. The Eclectic Paradigm of International Production

initiative. To begin with I would like to state that there is a difference between the dominant and ecological paradigm in the context of the sustainability initiative. The dominate paradigm is what values in a society that are most standard and widely held. Dominant paradigms are shaped both by the community 's cultural background. The ecological paradigm sees the current dominant paradigm as

Push: Paradigm Complexities 1 INTRODUCTION In Sapphire’s (1997) novel Push, she emphasizes an overall theme of surviving and overcoming adversities like identity, mental disability, and self-image. The dynamics of the book focuses on Clarice Precious Jones, a maltreated and obese, African American teenager who struggles with the repercussions of being physically, sexually, and psychologically abused by her parents— mainly, getting impregnated by her father. Precious and her first child by her father