1. International Investment Theories
INTERNATIONAL BUSINESS
CHAPTER 10
Chunni Yang
TFSU

2. Learning Objectives Development of major FDI theories
Advantage and disadvantage of each classic theory
Comparison of major comprehensive FDI analytical frameworks

3. FDI theories based on industrial organization approaches
Monopolistic Advantage Theory
Oligopolistic Reaction Theory

4. FDI theories based on trade and industrial location theories
Product Cycle Theory

5. FDI theories based on trade and industrial location theories
Marginal Industry Investment Theory

6. Theory based on transaction costs and internalization
Internalization Theory

7. Comprehensive frameworks
The Eclectic Theory of International Production
Table 10-1: Core of the Eclectic Theory
Operational modes O I L
Licensing
Yes No
Exporting
FDI
Source: Made by the author.

8. Comprehensive frameworks
The Eclectic Theory of International Production

9. Comprehensive frameworks
FDI process theory

10. Comprehensive frameworks
The FDI “1+3+6” framework

11. Thank you!