Eclectic Theory Of International Investment

Eclectic theory of international investment in Global Commerce Policy

In this regard, eclectic theory of international investment is: a theory of foreign direct investment that assumes that investment decisions are driven by the identification of ownership, location and internalization advantages, and these three components are viewed as interacting. First, direct investment gives the investor control over the asset. Second, it allows the investor to choose the location of a production facility that fits in best with the company’s aims. Third, foreign direct investment allows the investor company to utilize its existing intellectual capital in the best way.[1]

Eclectic theory of international investmentin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Eclectic theory of international investment” entry (OAS)

See Also