The Multinational Company: Emergence and Significance - Dunning's Eclectic Paradigm

a)<Tab/>Outline the reasons why companies chose to become multinational in scope. Illustrate your answers with examples. There is an increasing drive for global profits. The transnationalization of a firm's operations may be motivated by either raising the revenue of selling its products or reducing cost of producing its goods or services. The process is a totally logical extension of the firm's 'normal' mode of expansion: from local, to regional, …

…amp;lt;Tab/>Does not offer explanation, rather points to a methodology and to a generic set of variables. *<Tab/>Interdependence of variables Dunning suggests that the three variables that make up the paradigm are independent of one another. This may be misleading as, for example a firm's response to its exogenous locational variables might itself influence its ownership advantages, including its ability to and willingness to internalise markets.