📘 OLI Framework | 📅 1970s | 👤 John Dunning

🌍 The Eclectic Theory of Foreign Direct Investment (FDI) (Also known as the OLI Framework)

🧠 Developed by John Dunning

It states that FDI will occur when three advantages are uniquely combined:

1. 🅾️ – Ownership Advantage

– The firm must possess unique assets like technology, brand, or managerial capabilities that give it a competitive edge.

2. 📍 – Location Advantage

– The host country must offer location-specific advantages like natural resources, skilled labor, favorable regulations, or proximity to markets.

3. 🏢 – Internalization Advantage

– The firm must find it more efficient to exploit its ownership advantage internally (through FDI) rather than licensing or exporting.

✅ These three elements — Ownership, Location, and Internalization (OLI) — form the core of the Eclectic Paradigm.