Premium+

The Exploration of Dunnings OLI Framework - Coursework Example

Comments (0) Cite this document
Summary
The paper states that in delving into the extent that Dunning’s OLI framework provides a realistic explanation of the decision-making process a multinational enterprise (MNE) goes through in considering where to place Foreign Direct Investment (FDI), some interesting factors were uncovered…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful

Extract of sample "The Exploration of Dunnings OLI Framework"

Download file to see previous pages OLI stands for Ownership, Location, and Internationalisation, which represent three potential advantage facets a company uses to engage in equating the international stage in terms of investment (Brouthers et al, 1999, p. 837). In understanding what is meant by OLI, each of the three elements comprising the term need to be explained as a means to set the context of this study. With regard to Ownership, the characteristics looked for represent the firm having advantages in terms of modes and or methods of production techniques, trademarks, scale (concerning economies of operation) as well as management skills that tend to lead toward an entrepreneurial outlook (Brouthers et al, 1996, pp. 379-380). The significance of the above, along with a company having specific competitive advantages with regard to Foreign Direct Investment (FDI), represent important reasons and rationales in terms of ascertaining the potential degree(s) of success it will or might have  (Bevan and Estrin, 2004, pp. 780-783). Prior to delving further into the remaining two OLI elements, an understanding of Foreign Direct Investment is needed in order to aid in setting the context. One definition stated that FDI represents “… a company from one country making a physical investment into building a factory in another country” (Going Global, 2010).  It continues “… The direct investment in buildings, machinery, and equipment is in contrast with making a portfolio investment, which is considered an indirect investment” (Going Global, 2010). In another definition, FDI is defined as “A major investment by a foreign corporation … A common example of foreign direct investment is a situation in which a foreign company comes into a country to build or buy a factory” (The Free Dictionary, 2012). As a means to clarify FDI, the Organisation for Economic Co-Operation and Development (OECD, 1999, p. 7) has constructed what they term as a benchmark definition. The OECD (1999, p. 7) states “Foreign Direct Investment reflects the objective of obtaining a lasting interest by a resident entity in an economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise)”. It goes onto add that “The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise” (OECD, 1999, p. 7). “Direct investment involves both the initial transaction between the two entities and subsequent capital transactions between them and among affiliated enterprises, both incorporated and incorporated” (OECD, 1999, p. 7). As can be seen from the complexities of FDI investment, the considerations a firm needs to take into account in some cases can be quantified, whilst in others, they cannot. This examination will bring forth both instances. In so doing, it must be remembered that the safest FDI locales might not necessarily represent ones that suit the particular demands or dictates a firm needs. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Exploration of Dunnings OLI Framework Coursework, n.d.)
The Exploration of Dunnings OLI Framework Coursework. Retrieved from https://studentshare.org/finance-accounting/2022645-dunnings-oli-framework
(The Exploration of Dunnings OLI Framework Coursework)
The Exploration of Dunnings OLI Framework Coursework. https://studentshare.org/finance-accounting/2022645-dunnings-oli-framework.
“The Exploration of Dunnings OLI Framework Coursework”, n.d. https://studentshare.org/finance-accounting/2022645-dunnings-oli-framework.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Exploration of Dunnings OLI Framework

Space Exploration

...Space exploration Have you ever wanted to travel to the outer space? Orbit around the earth in spacecraft or visit the moon and other planets on the galaxy using sophisticated technology at the taxpayers' expense? Ever closed your eyes and dreamt of walking on the moon’s surface, just like Neil Armstrong when he became the first person to set foot on the moon’s surface? Have you ever considered taking pictures of ‘the red planet’ by employing powerful lenses mounted on satellite dishes located on the outer space? These are some of the flashy images that come to one's mind when thinking about space exploration. The government and NASA have conspired to brainwash the ordinary person with these images,...
3 Pages(750 words)Essay

Framework

...). The Option Trader's Hedge Fund: A Business Framework for Trading Equity and Index Options. USA, NJ: FT Press. Tranter, W. H., Woerner, B. D., Rappaport, Th. S. & Reed, J. H. (2006). Wireless Personal Communications: Channel Modeling and Systems Engineering. New York, NY: Springer. Uysal, M., & Fesenmaier, D. (2001). Communication and Channel Systems in Tourism Marketing. New York, NY: Routledge.... individual and having this attribute could help me see unobvious opportunities and share it with the company aiming at creating an appropriate compliance and integrity framework to support innovation in solutions, processes, and products in a highly regulated world. I have a believe that all of these concepts will be...
3 Pages(750 words)Essay

EXPLORATION PAPER:

...the eighteenth century, the relevance of exploring his observations is everlasting – at least until human being stops erring, either intentionally or instinctively. The magnificent effect of his appraisal of human behavior modals and the quality of his observations relative of the thesis of his researches make him a stalwart in his field. Among all his remarkable theories, Kant’s approach on metaphysical elements of human psychology is remarkable as they deal with the reasons behind ethics in detail. According to his view (Kant & Abbot, 2008, p. 15), the obedience to moral laws followed by the rather unholy human minds is derivative of the constraints set by the notion of duty vested in them. He explains that the...
4 Pages(1000 words)Essay

Career exploration

...? Career Field and Occupation The occupation that I chose to explore is Mental Health Counselor. The O*NET SOC of this occupation is 21-1014.00. The Nature of the Work for this Career Medical health counseling mainly involves working with individuals to ensure ideal mental and emotional health. As a counselor, I will handle different kinds of issues such as marital problems, stress management issues, effective parenting and problems arising from teenage pregnancies. Therefore, the occupation mainly involves interaction with individuals of different characters. The major duties that I will handle in this occupation include intensive communication with the patients to ensure that I obtain full and detailed information from...
5 Pages(1250 words)Research Paper

Framework

...? FRAMEWORK Insert Introduction Since the early 1980’s, researchers in the field of computer science have went under the impression which the software production process involves a set of systematic and well-defined discrete procedures which brought to mind Management Information Systems (MIS) creation progressions which have evolved over time to discrete forms of advanced computing (International Conference on New Trends in Software Methodologies, Tools and Techniques, Fujita & Pisanelli 2007). Nevertheless, the established methods to software development are often the subject of incessant review. In line of this review, we examine the complexities of agile development and object oriented design in the development of a new system... and...
4 Pages(1000 words)Essay

Cultural Exploration

...Cultural Exploration: Southeastern Georgia Caucasian and Chinese Cultures Semester, Name of Institution Dated Introduction Culture is not frozen or fixated in time or space. Rather, it is a very dynamic phenomenon. It does vary from one society to the other and from one period to the other. Given the fact that human beings are social, the aspect of the varying aspects of culture from time to time and from place to place plays a very significant role. This is because there is need for human beings to interact from time to time due to their social nature. As they interact, there comes a time when it becomes necessary for one culture to interact with the other. As this interaction takes place, there are potential effects...
9 Pages(2250 words)Term Paper

Career Exploration

...aging in the developed world, the need for medical care and search for medical attention in this aspect is growing as well. These two career paths are promising in the radiological world for me and are promising a fulfillment if I ventured into them serving as great opportunities for growth and improvement in my career. References Baker, S. R. (2014). Who Will Be the New Radiologists?: A 2012 Assessment. In Notes of a Radiology Watcher (pp. 89-91). Springer International Publishing. Burtnett, F. (2010). Bound-for-career guidebook: A student guide to career exploration, decision making, and the job search. Lanham, Md: Rowman & Littlefield Education. Callaway, W. J. (2013). Professional Associations....
4 Pages(1000 words)Assignment

Career Exploration

...into sixteen character types which are assessed through the scale of the skills and nature of the person. According to the question based assessment, my temperament is idealist. The idealists can be enjoying the role of mentors and the advocates. These people are the inspiring and are passionate to develop their own skills and abilities. They seek the chances of learning more and more and are expressive. The idealists can be the counselors and on the other hand they can be the champions. They are efficient and active in listening to others and finding the solutions to the problems. The temperament of the idealists is independent, inspiring and the unifying. (Turner, S. L., Steward, J. C 2004) The second component of my...
5 Pages(1250 words)Assignment

OLI model

...DUNNING’S OLI MODEL IS INCAPABLE OF FULLY DESIGNING AN INTERNATIONAL CORPORATE STRATEGY Introduction OLI stands for Ownership, Location and Internalization; they are the three core sources of advantages, which underlie a companys decision to be multinational. Eclectic or OLI is an approach to studying a foreign direct investment (FDI). John Dunning developed the model (Faeth, 2009). It has to some extent proved useful in explaining the multinational enterprises (MNEs); it has also inspired some great work in international businesses and economics. In itself has no formal theory that can be served in the scientific way of analyzing data (Beugelsdijk, 2012). The above approach neglects critical issues, which are critical in defining... basis....
12 Pages(3000 words)Essay

Cultural Exploration

...Cultural Exploration India and US has distinct cultures that also puts them a part in terms of the gender expectations and task relationship. From the time immemorial, India has been known for its discrimination against women. For instance, Indian culture gives more expectations to male than women. Women are subordinated in the society and at some point denied some privileges. At the same time, men are nurtured well to be important people in the society. The society and families expects more from men than women as per the Indian tradition. On the other side, US have equal gender expectations. Children are treated equally regardless of their gender and they grow and develop knowing they are equal. Hence, the US culture...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic The Exploration of Dunnings OLI Framework for FREE!

Contact Us