Assessing the Essence of Teh Eclectic Paradigm in Today's Globalised World.
Mauritius College of the Air
In Collaboration With
University of Mauritius
International Business
MBA
Cohort 4
Name of Student: Ashish Gopee | “Assessing the significance of the Eclectic Paradigm in today’s Globalised world.” | |
Thomas Friedman (1999: xvii) in his book, The Lexus and the Olive tree, described the world as “being tied together into a single globalised marketplace and village”. It has become commonplace to observe that we are all now living in a globalised world, transforming the way we live and work. Aspects frequently highlighted include global media and telecommunications, global brands, worldwide production and integrated financial markets. At the forefront of these phenomena are Multi National Enterprises (MNEs), benefiting from the opening of markets across the globe, and from advances in computing and internet technology, which make it possible to link far-flung activities in global networks. Considering these elements, globalization can further be defined as the process of increasing and deepening interactions between individuals and organizations across the globe, facilitated by advancing communications technology and the opening of markets to trade and investment. Theories of International production have attempted to explain the convergence towards a globalised world, while addressing the different types of international expansions. These theories have focused on MNEs and Foreign Direct Investment (FDIs). FDI can be defined as investment by an organization in a business in another country, with a view to establishing production in the host country. While Raymon Vernon is known for his theory of Product life cycle, Stephen Hymer laid emphasis on the location and ownership advantages of countries, which helped in attracting FDI from MNEs. John Dunning incorporated Internalisation to the analysis of Hymer, which became known as the Eclectic Paradigm (or OLI Paradigm), one of the most comprehensive theoretical
In Collaboration With
University of Mauritius
International Business
MBA
Cohort 4
Name of Student: Ashish Gopee | “Assessing the significance of the Eclectic Paradigm in today’s Globalised world.” | |
Thomas Friedman (1999: xvii) in his book, The Lexus and the Olive tree, described the world as “being tied together into a single globalised marketplace and village”. It has become commonplace to observe that we are all now living in a globalised world, transforming the way we live and work. Aspects frequently highlighted include global media and telecommunications, global brands, worldwide production and integrated financial markets. At the forefront of these phenomena are Multi National Enterprises (MNEs), benefiting from the opening of markets across the globe, and from advances in computing and internet technology, which make it possible to link far-flung activities in global networks. Considering these elements, globalization can further be defined as the process of increasing and deepening interactions between individuals and organizations across the globe, facilitated by advancing communications technology and the opening of markets to trade and investment. Theories of International production have attempted to explain the convergence towards a globalised world, while addressing the different types of international expansions. These theories have focused on MNEs and Foreign Direct Investment (FDIs). FDI can be defined as investment by an organization in a business in another country, with a view to establishing production in the host country. While Raymon Vernon is known for his theory of Product life cycle, Stephen Hymer laid emphasis on the location and ownership advantages of countries, which helped in attracting FDI from MNEs. John Dunning incorporated Internalisation to the analysis of Hymer, which became known as the Eclectic Paradigm (or OLI Paradigm), one of the most comprehensive theoretical