II. OVERVIEW OF NOKIA
-The Eclectic (OLI) Paradigm
IV. ANALYSIS OF FDI MOTIVATIONS: NOKIA CHINA AND NOKIA KOREA
-Ownership Advantages of Nokia China
-Locational Advantages of Nokia China
-Internalization Advantages of Nokia China
-Ownership advantages of Nokia Korea
-Locational advantages of Nokia Korea
-Internalization Advantages of Nokia Korea
V. ANALYSIS OF INVESTMENT MOTIVATION BY IMBALANCE THEORY: NOKIA KOREA
-Related & Supporting Industries
-Strategy, Structure & Rivalry
In today’s increasingly global world more and multinational companies (MNCs) are investing abroad. The motivations of these MNCs in foreign direct investments (FDI) have been the focus of scholars for many years. Stephen Hymer initiated this field of study by explaining market failures which give reason for internalization. This was then developed by John Dunning with the OLI (Eclectic) Paradigm, which has been the leading theory in explaining FDI. When Dunning published the OLI Paradigm the prevailing pattern of FDI was conventional (investment from a more developed country to a less developed country). The world condition of FDI has changed dramatically since then, and unconventional FDI (investments from a less developed country to more developed country) are becoming prevalent. In 1993 Moon and Roehl published a new theory called the Imbalance Theory to explain this new phenomenon (Moon 2004).
The purpose of this paper is to give further empirical evidence for the usefulness of the Imbalance theory in explaining both conventional and unconventional FDI. A theory is first developed and then real life cases are applied to test its explanatory power.