A critical review against Dunning's Eclectic Theory

INTRODUCTION It is true of everything that the first steps ate both the most important and the most difficult. To begin with, theorization consists of a set of definitions of concepts. The basic concepts underlying the eclectic theory of the multinational enterprise (MNE)(1) are currently being criticized by the internalization theorists(2) in that the 'ownership advantage' is 'double counting,' that is, the internalization and location factors are necessary and sufficient to explain the existence …

…be separated from international trade theory, and that the comparative advantage should be taken into any consideration of this synthesis. Third, the financial theory: the fact that the world economy consists of national economies with different interest rates and purchasing power disparity means that the valuation of economic advantages in financial terms should influence the activities of MNEs across national economies. We have just taken a first step and prepared an agenda for further study.