Abstract
This study aims at examining the Slovenian airdrome multinational corporation construction Company, in OLI paradigm factors, notably focusing on how the OLI paradigm can be utilized to explain the course of the company for the decision of internationalization production. The major outcome of this study demonstrates that among the OLI paradigm, ownership and location advantages can best explain the Company’s internationalization of production as the Company has the monopolistic advantage in production airdrome in Balkans, at old Soviets countries, and the Middle East and those regions present locational advantage because of their effective demand capacity, low labor costs, free entry markets.
Highlights
This study aims at examining the Slovenian airdrome multinational corporation construction Company, in OLI paradigm factors, notably focusing on how the OLI paradigm can be utilized to explain the course of the company for the decision of internationalization production
The theory founded by Dunning (1973, 2001, 0197) Foreign direct investments (FDI) by Multinational corporations (MNCs) are a 1979; Dunning and Lundan, 2008), received significant global critical factor in trade internationalization because there is a support from all the theories on international business close relationship between countries’ development and direct (Sharmiladevi, 2017, 47)
The US’s economic progress thought. (Cantwell and Narula, 2001, 155-156) It is based on during the Second World War led to firms emerging with a three significant concepts, Ownership, Location, and capacity that extended beyond the US
Summary
One Slovenian construction Company, using the OLI paradigm. was the first scholar to elaborate the FDI in imperfect market. In the last two decades, FDI theories These include scale economic capacity, management and have focused on international production from developing marketing ability, advanced technology, financial power, countries to other countries as their economies have enlarged product variety, and competitiveness in national markets. The prerequisite for these international to Internationalize Production activities is ownership advantages, including skills such as. A. Employing qualitative method, this case study Company with ownership advantages can enter into license explored how the Company’s internationalization of agreements whereas location advantages are important for production decision will be explained according to Dunning’s direct investment. These dynamics account for the motives, markets, establishing production facilities nearer to raw drivers, and conditions that lead firms to decide to material sources, benefiting from the hosting country’s cost internationalize production
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