In this chapter I am going to explain the theory of
multinational and theory of why firms produce overseas.
Basically a multinational is an enterprise that
engages in FDI and owns or controls value adding activities in more than one
country (Dunning 1992)
Reasons for the creation of multinational
enterprises:
1. Classical/Neo
Classical models of Trade
2. Hymer’s
Theory of International Production
3. Vernon’s
Product Life Cycle
4. The
Eclectic Paradigm
5. Technological
Accumulation Theory
6. The
Investment Development Path
7. Alliance
Capitalism
