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Dunning (1977)Management > Global Firm > Lectures > Independent Research > Dunning
Dunning (1977) - The eclectic paradigm“The eclectic paradigm seeks to offer a general framework for determining the extent and pattern of both foreign-owned production undertaken by a country’s own enterprises and also that of domestic production owned by foreign enterprises.” Pg76 It is not a theory, but a framework containing a collection of theories. “It is concerned with the foreign-owned output of firms rather than the way that output is financed.” It focuses on positive (what is), rather than normative issues (what should be), which is the main aim of classical and neo-classical macro-economics. The latter two rely on perfectly symmetric information and do not consider the element of humanity. “The theory of MNE activity stands at the intersection between a macro-economic theory of international trade and a micro-economic theory of the firm.”
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