Multinational buainess Essay Example | Topics and Well Written Essays - 2500 words

Multinational buainess - Essay Example At the present economic environment such theories and models are considered to be very important as the importance of multinational organizations to the global economy has increased significantly. Dunning’s eclectic paradigm theory is one of the most widely discussed theories in the world of international production. This paper attempts to present a clear description of this theory and several of its dimensions. The paper also includes a proper analysis of the criticisms that the Dunning’s model has faced over the years. There are several other theories on the similar subject and Dunning’s theory can be compared with those to analysis the effectiveness of it. This paper includes such a comparative analysis that is likely to help an individual to have a clear conception regarding the entire picture of such theories. Academic Literature John H Dunning is famous in the international business arena for his ‘Eclectic Paradigm’ theory. It is actually the i ntegration of several theories on internationalization. It covers many mainstream theories such as Ohlin and Heckscher’s ‘factor endowment theory’, Coase’s ‘trasaction cost theory’, Hymer’s ‘monopolistic advantage theory’ and ‘internalization theory’ of Casson and Buckley. In 1976, Dunning presented the core concept of eclectic paradigm at Nobel Symposium which is located in Stockholm. The theory explains precisely why a firm should go global. Dunning attempted to provide a clear and complete explanation regarding international production. He has consistently supplemented and improved his theory in accordance to various developments in the global economic environment and also in accordance to several constructive criticisms. Dunning opined that there are three conditions that have significant influence over the firm’s decision regarding transnational production. In other words, a firm will involve in â⠂¬Ëœinternational production’ if these three conditions are met. The three conditions are 1) ‘ownership-specific advantages’, 2) ‘internalization advantages’ and 3) ‘location specific advantages’ (Dicken, 2007). Each of them is properly described below. Ownership-Specific Advantages According to Dunning, an organization must have some ownership specific advantages which are not possessed by the rival organizations of other countries. The basis of this theory of Dunning lies in the ‘Monopolistic Advantage Theory’ that was developed by Hymer. According to Dunning, ownership specific advantages â€Å"must be sufficient to compensate for the costs of setting up and operating a foreign value-adding operation in addition to those faced by indigenous producers or potential producers† (Dunning, 1981). These advantages are like ‘internal assets’ of a firm which is the sole owner of them. Ownership specific advanta ges can be gained from the factors like technology, knowledge, internal brands, human resources etc. (Dicken, 2007). In the words of Dunning, ownership specific advantages â€Å"need not arise from multinationality† (Perry, 1992). These advantages

Cloud computing and IT management Essay Example | Topics and Well Written Essays - 500 words

Cloud computing and IT management - Essay Example Rapid developments in the fields of computers and communications technologies have enabled information technology to secure a commanding position in all walks of life ranging from financial transactions through entertainment to water supplies. Surprisingly, healthcare systems – a domain of high social relevance, world over can be considered as laggards in adopting information technologies (Braa et al. 1). The prime issues those are challenging healthcare IT are (Hersh, 2273): Despite these challenges, forward looking and IT savvy clinicians are trying their best to lead the adoption drive in their respective healthcare set ups, the day is not far when IT applications in healthcare will merge into mainstream healthcare delivery systems. Telemedicine (use of information technologies like internet to deliver healthcare services at a distance) is one applications of HealthIT that has the potential to not only address some of the intransigent healthcare issues but is also promising enough from a business perspective. Telemedicine enables delivery of healthcare services and medical education from one geographical location to another primarily to address challenges like uneven distribution and shortage of infrastructural and human resources. Tertiary hospitals can set up peripheral hospitals in remote and isolated areas these and these peripheral hospitals can have telemedicine linkages via internet with the tertiary level (referral) hospital primarily to extend the reach of specialized medical services to remote and isolated cases. This type of business concept has been used by a number of healthcare service providers around the globe. Slowly and steadily such services are not only bridging the digital divide but are also acting as pathways for revenue generation. 2. Brown, E.D. "Risks and issues in Cloud Computing." Eric D Brown: Technology, Strategy, People and Projects 2 Feb 2009: n. pag. Web. 4 Nov 2009.