First proposition of Eclectic framework which incorporates
LOCATION Theory and PROPERTY RIGHTS Theory into
International Firm Theory (Calvet, 1981)
To analyze, interpret and rationalyze firms' strategy, growth and entry modes
look at Ownership, Location and Internalization (OLI) (Dunning, 1988)
Reestate OLI integrating value from alliances and interdependence (Dunning, 1995)
There are 4 methods of entry: Export, Joint Venture, Sole Venture, and Licensing; and
three elements that dictate which to choose: Ownership advantages (firm size,
experience and ability to develop differentiated products) Location advantages (market
potential and risk), and Internalization advantages (Agarwal & Rasmawami, 1992).