What is Eclectic Paradigm

1.

A theory in economics, also known as the OLI Framework, where O, L, and I refer to ownership advantages, location advantages, and internalization advantages respectively. Learn more in: Globalization of Latecomer Asian Multinationals and Theory of Multinational Enterprise

2.

Is a theory grounded on a three-tiered framework (a comparative advantage, an ownership advantage and an internalization advantage) that analyses, for a given company, if it is beneficial to pursue foreign direct investment. Is based on the assumption that institutions will avoid transactions in the open market when internal transactions carry lower costs. Learn more in: Serendipitous Network Internationalization: A Case Study in the ICT Services Sector