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  1. 1 Myśl Ekonomiczna i Prawna

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  1. 1 Jarosz R.

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  1. 1 2009

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TRANSNATIONAL CORPORATIONS AND THEIR ROLE IN THE ERA OF GLOBALIZATION (Korporacje transnarodowe i ich rola w okresie globalizacji)

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Jarosz R.
Myśl Ekonomiczna i Prawna
|
2009
|
issue 4(27)
103-114
EN
Globalization and liberalization of the global economy give an increasing opportunity for domestic firms to internationalize their operation. There are several different ways of entering the foreign market, from export to direct investments. According to the J. H. Dunning's eclectic theory of international production, which is widely accepted as the best theoretical explanation of foreign direct investments (FDI), a firm only makes direct investments when three conditions are simultaneously fulfilled. These are ownership advantages, location advantages and internalization advantages. The article seeks to explain, on the theoretical basis, the necessary conditions for the firm to undertake FDI. The last part gives the theoretical introduction to problem of Home Market Effects of FDI
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