Question: In preparing to write this section, you will have to do your homework in evaluating whether ownership, location, or internalisation advantages ( see OLI paradigm
In preparing to write this section, you will have to do your homework in evaluating whether ownership, location, or internalisation advantages see OLI paradigm are key to the success of the MNE. If not, what other forms of the organisation other than FDI would you recommend?
Required article reading: Dunning, JH The eclectic paradigm as an envelope for economic and business theories of MNE activity. International Business Review :
Furthermore, first evaluate if the location advantages gained are a good fit for the strategic goals of the MNE.
Then evaluate if institutional constraints and enablers governing FDI enhance the legitimacy of the MNE in the host country.
What implications for management action did you draw from your evaluation of FDI in the host country?
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