| Eclectic Paradigm | |
 A theory that provides a three-tiered framework for a company to follow when determining if it is beneficial to pursue direct foreign investment. |
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 In order for a direct investment in a foreign country to be beneficial, the following advantages must be present: 1. Product or company specific advantages, such as a comparative advantage. 2. Location specific advantages - where the company derives greater benefit through a foreign establishment. 3. Market internalization - meaning it is better for the company to exploit a foreign opportunity itself, rather than through an agreement with a foreign firm. |
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 What Is An Emerging Market Economy? - What are emerging market economies, and are the potential rewards for investors worth the risks? Dollarization Explained - Find out how fledgling economies can find some stability in their currency and therefore attract foreign investment. |
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Related Terms
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