Multinationals and Intermediate Product Trade

Abstract

Dunning (1981) suggests that the behaviour of multinational enterprises (MNEs) can be analysed in terms of three groups of factors: ownership advantages, location advantages, and internalisation. Buckley (1983) notes that of these three, location advantages have received least attention in recent years, despite the fact that, historically, location advantages have strongly influenced the growth of international production (Dunning, 1982). This chapter is an attempt to make good this deficiency.