The Multinational Company: Emergence and Significance - Dunning's Eclectic Paradigm
Title: The Multinational Company: Emergence and Significance - Dunning's Eclectic Paradigm
Category: /Business & Economy
Details: Words: 920 | Pages: 3 (approximately 235 words/page)
The Multinational Company: Emergence and Significance - Dunning's Eclectic Paradigm
Category: /Business & Economy
Details: Words: 920 | Pages: 3 (approximately 235 words/page)
a)<Tab/>Outline the reasons why companies chose to become multinational in scope. Illustrate your answers with examples.
There is an increasing drive for global profits. The transnationalization of a firm's operations may be motivated by either raising the revenue of selling its products or reducing cost of producing its goods or services. The process is a totally logical extension of the firm's 'normal' mode of expansion: from local, to regional,
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amp;lt;Tab/>Does not offer explanation, rather points to a methodology and to a generic set of variables.
*<Tab/>Interdependence of variables
Dunning suggests that the three variables that make up the paradigm are independent of one another. This may be misleading as, for example a firm's response to its exogenous locational variables might itself influence its ownership advantages, including its ability to and willingness to internalise markets.