Companies would benefit from using a multidomesric [polycentric] Essay

Companies would benefit from using a multidomesric polycentric strategy in prefernce to a global grocery storeing strategy Anon Discuss - Essay Exampleeriod of time since Dunning (1977) has driven root the point of why and how does a Multinational Enterprises (MNE) obtain this proceeds away from their spot bases. He essential the eclectic paradigm that explains the various factors that influence the MNEs to decide on Internationalization through opposed Direct Investment (FDI).Globalisation has become a necessity for companies in search of competitive advantage (Porter 1980). This has meant shifting of operations, especially deed to other countries in preference over home countries. There is a twin objective for companies to go global the first is to find new and cost effective production centres and the second is to find new markets.Motives for locating Production away from home countries may be summarised in a categorization formulated by Behrman (1972). The classification i dentifies four types of multinational activity the resource seekers, the market seekers, efficiency seekers and strategic asset or capability seekers. The market versus hierarchy organisation of production (internalisation) was special by the eclectic paradigm of Dunning (1980 1988a 1988b) who has evaluated Foreign Direct Investments (FDI) in terms of ownership, location and internalisation (OLI). market place and Resource seeking motives have been the two close recognised categories of motives (Dunning 2000). These two are the main reasons for most first time internationalisation at regulates by firms. It often happens that resources fall short in the home kingdom which limit growth of firms and in turn maces them inefficient, whereas the required resources may be readily available abroad. This would tempt the firm to go international for just the reason of acquiring resources to become competitive in the home market. Many an MNE have exploited cheaper labour and raw material ab road for reducing costs of their products for sale in the home countries. This has direct bearing on the profits of the company. Most Western companies