The dunning's eclectic paradigm in helping us understand why firms internationalise

Thèmes abordés

Dunning's paradigm, firms internationalisation, multinational firms, internationally localization, global economy

Résumé du document

Understanding the phenomenon of multinational firms is not simple. Not only the number of variables that influence their behaviour is immense, but the firms are constantly evolving always finding new strategies. Why a firm gets multinational? In recent decades, the role of MNCs plays an increasingly important within the global economy.
The internationally localization can be defined as the choice of the firms to "be" outside the national borders when they could have stay in their country of origin (Mucchielli Jean-Louis, 1998). This process rarely affects all the business functions because, as states (Krugman, 1995), the international decomposition of the business value chain is one of the most important aspects of the global economy.

Extraits

[...] O Sequential exporting s.l., CEP Discussion Paper 974. Hymer, S The International Operations of National Firms: A Study of Direct Investment . MIT Press. J.R. Markusen, A. V. D. K. K. Z A Unified Treatment of Horizontal Direct Investment, Vertical Direct Investment and the Pattern of Trade in Goods and Services s.l.:NBER Working Paper n°5696. Julius, D. S Global companies and public policy: the growing challenge of foreign direct investment . s.l.: Taylor & Francis . [...]

[...] H The Eclectic (OLI) Paradigm of International Production : Past, Present and Future International Journal of the Economics of Business, p E. Helpman, M. M. S. Y Export versus FDI with Heterogeneous Firms American Economic Review, pp. 300-316. F. Albornoz, H. C.-P. G. C. e. E. [...]

[...] The second exposes the paradigm within its limits in the current context. The third part notes the new theories and approaches that can be used to understand the internationalization of companies. Dunning's paradigm definition and effectiveness This paradigm has been theorized by John Dunning in 1981. It assumes that any multi-national company (MNC) is facing two questions: firstly, he must choose to produce or to outsource; on the other side, it must decide to produce on its home country and export or to make a direct investment abroad. [...]

[...] develop a model based on learning and experimentation in which companies would find out their profitability in foreign markets after starting to export. (F. Albornoz, 2010) Specifically, a company would start exporting a product to one country before doing business in other states if the first country exportation is proven efficient. Moreover, P. Conconi, Sapir and Mr. A. Zanardi seek to understand why a company already doing exportation in one country will decide to preserve business there trough FDI strategy. (P. Conconi, 2010). [...]

[...] Mucchielli Jean-Louis, C. S Implantation à l'étranger et performance à l'exportation. Une analyse empirique sur les implantations des firmes françaises. Revue économique , pp. 617-628. NARULA, R. e. D Globalisation and new realities for multinational enterprise-developing host country interaction, Oslo: University of Oslo, Norway. Neary, M. M. e. J Firm Selection into Export-Platform Foreign Direct Investment. s.l., Trade Seminars SciencesPo. [...]