This paper first sets out the main features of the eclectic theory of international production and then seeks to evaluate its significance of ownership- and location-specific variables in explaining the industrial pattern and geographical distribution of the sales of U.S. affiliates in fourteen manufacturing industries in seven countries in 1970.

https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8490593.pdf

Toward an Eclectic Theory of International Production: Some Empirical Tests

Explaining changing patterns of international production: in defence of the eclectic theory

‘revealed’ comparative advantage revisited: an analysis of relative export shares of the industrial countries, 1953–1971

International production and alternative models of trade

The theory of internalisation does provide an explanation of certain types of FDI activities by MNEs. In particular, there are three areas where internalisation appears to provide an explanation of FDI as a specific form of international involvement by the MNE: these entail vertical integration, transfer pricing and quality control [Buckley, Casson, 1976; Casson, 1983].

Internalisation as a general theory of foreign direct investment: A critique

Trade and non‐trade performance of u.s. manufacturing industry: ‘revealed’ comparative advantage

The general importance of technological advances, based on successful industrial research and development, is well established in the economics of international trade and investment. A part of the emphasis on technology as a factor in international trade has resulted from the general reaction to Leontief's findings about the apparent factor intensity of U.S. trade: findings which went against the accepted pattern of the capital‐ and labour‐ based Heckscher‐Ohlin model of international trade. More important though is the recognition of the commercial significance of product‐ and process‐ oriented industrial innovation in an industry's international operations. There is ample evidence to support the usually accepted connection between research and development and international trade and investment in the case of United States' manufacturing industry. There has not, however, been a proper examination of the nature of this relationship in U.K. manufacturing industries. With the availability of new data on book values of British direct investment abroad by industry groups, some assessment of the connection between research activity and export‐ and foreign‐investment positions can now be undertaken.

Thomas G. Parry

Papers

Trade and non‐trade performance of u.s. manufacturing industry: ‘revealed’ comparative advantage

The role of r&d in the international trade and investment of u.k. manufacturing industry