Abstract
The paper critically deals with the electric theory of the multinational enterprise. It examines, firstly, the theoretical redundancy of the ‘ownership advantage’; secondly, the inseparability of the ‘ownership advantage’ from the ‘location advantage’; thirdly, the conceptual ambiguity of the ‘location advantage’; and, lastly, possible methodological dangers of a multi-factor analysis under the three headings of the eclectic theory.
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