GSM Lecture 2

Management > Global Strategic Management > Comparative advantage > Hymer > Vernon > Product cycle > Buckley and Casson > Internalisation > Eclectic paradigm > Ownership advantages > Motives for FDI > OA, LA and I > Problems?

Problems?

The eclectic framework is a framework, not a theory. This must be remembered. There are some possible problems which the framework does not sufficiently explain, including:

• Its lack of predictive power
• What do we do with the e-company? It has no LA or many OA issues
• What do governments do with non-internal activity? Who or what is in charge? Should e-companies be taxed?
• How do firms effectively manage networks?