Discussion of the contribution of Dunning's Eclectic Theory

"Technological changes, particularly in the space-shrinking technologies of transport and communication, help to make possible the internationalization of economic activity and the development and geographical spread of transnational corporations" (Dicken, 1992, p.120). These changes have made a great explosion in Foreign Direct Investment (FDI) in the last 20 years throughout the world. FDI has been growing at a high rate, and trade barriers have fallen extensively at the same time (De Santis and Stahler, 2003; Javalgi, Griffith, and …

…in this modern age, the world of international business is changing rapidly so it will generate much more problem when we want to formulate a theory about FDI. That's why, for the first step, maybe Dunning's theory can be used, but for further study of international business, it still needs much reformulation and researches. Hopefully with these researches, a new theory, that can give more contribution to the study of international business, can be obtained.