PRODUCTIVITY GROWTH HYPTHESIS Essays - Statistical Inference

PRODUCTIVITY GROWTH HYPTHESIS Essays - Statistical Inference PRODUCTIVITY GROWTH HYPTHESIS Business PRODUCTIVITY GROWTH HYPTHESIS In this assignment, we will attempt to study the effects that difference in Income Ratio (henceforth known as I.R.) between the years 1980 and 1990 have on the Productivity Growth (P.G.) during the same period of time. The Income Ratio of one specific year can be found if we take the average income of the richest faction of a country (the richest 20% of the population) and divide it by that of the poorest faction (the poorest 20%). In this assignment, the Income Ratios that were used were those of 13 different countries. The I.R.'s on both 1980 and 1990 were taken for all these countries and, to find the difference between them, the I.R. for 1990 was divided by the I.R. for 1980, for each country. These new numbers illustrate the change of I.R. between the two years so that we can compare how the P.G. changes in relation to the changes in the I.R.. On this assignment, we use inductive reasoning to examine the data and find a theory (a hypothesis) that would combine the data given in a way that would make sense, based solely on our data. How do we know if the "theory" that we formulate makes sense? In this case we will plot the points (derived from the column "I.R. 1990/1980," going on the x-axis, and the column "Productivity Growth 79-90," on the y-axis). According to how the points are on the graph in relation to the Average Point (0.94,1.45) (point that is an average of all values and which divides the graph into four Quadrants), if 80% of these points are where they would be expected to be to conform to the hypothesis, then there is no reason to reject this hypothesis. If, on the other hand, the majority of the points does not conform to our hypothesis (are not where they were predicted to be), then it is rejected. Another method of reasoning frequently used by Mainstream economists is "deductive knowledge," as opposed to "inductive," described above. Their theory is formulated and only then it is applied to the data. Their theory on this subject suggests that productivity within a country grows when the population has incentives to work harder (or to work more). When the gap between rich and poor increases (an increase in I.R. form 1980-90, resulting in a larger ratio on the column I.R. 1990/1980), so does the population's eagerness to work, therefore increasing the Productivity Growth. Since when one variable goes up the other also goes up, there is a positive (or direct) correlation between the two. Mainstream economists use deductive reasoning to deduce that there exists a positive correlation between the two factors. In short, their hypothesis is that when the Income Ratio increases, the Productivity Growth also increases, since people are more motivated. For this to be true, we would expect a line going up and to the right on the graph, passing by Quadrants II and IV. Most points (80% or more) would have to be on these two Quadrants. This, however, is not the case (see graph), since only about 30.77% of the points plotted satisfy these conditions. Since the original hypothesis was rejected, we might want to see if there is a negative correlation between the two variables (that is, as one goes up, the other goes down). Our new hypothesis would then be "as the Income Ratio increases, the Productivity Growth decreases." Then, in the case of a high I.R., people in lower classes would rationally start to feel insecure and that their work is not being recognized by society, therefore losing motivation and producing less. In this case, since there's a negative correlation, one would expect the line on the graph to go downwards, from left to right, passing on Quadrants I and III. If this hypothesis were valid, 80%+ of the points would have to be on these Quadrants. This is also not the case, for only 69.32% of the points are on the appropriate Quadrants. Like the first, this second hypothesis also has to be rejected. After analyzing these two relationships and seeing that neither is valid, we conclude that there is no direct relationship between the two variables tested. That does not mean that one has no effect on the other (it probably does), only that there may be other factors and influences involved that have not been accounted for in this assignment and that one is not the only factor responsible for the changes in the other. DATA SHEET

Battle of Chapultepec in the Mexican-American War

Battle of Chapultepec in the Mexican-American War The Battle of Chapultepec was fought September 12-13, 1847, during the Mexican-American War (1846-1848). With the start of the war in May 1846, American troops led by Major General Zachary Taylor scored quick victories at the Battles of Palo Alto and Resaca de la Palma before crossing the Rio Grande to strike the fortress city of Monterrey. Assaulting Monterrey in September 1846, Taylor captured the city after a costly battle. After the Monterreys capitulation, he annoyed President James K. Polk when he gave the Mexicans an eight-week armistice and permitted Monterreys defeated garrison to go free.   With Taylor and his army holding Monterrey, debate commenced in Washington regarding American strategy moving forward. Following these conversations, it was decided that a campaign against the Mexican capital at Mexico City would be critical to winning the war. As a 500-mile march from Monterrey over difficult terrain was recognized as impractical, the decision was made to land an army on the coast near Veracruz and march inland. This choice made, Polk was next required to select a commander for the campaign. Scotts Army Though popular with his men, Taylor was an ardent Whig who had publicly criticized Polk on several occasions. Polk, a Democrat, would have preferred a member of his own party, but lacking a qualified candidate, he chose Major General Winfield Scott.   A Whig, Scott was seen as posing less of a political threat. To create Scotts army, the bulk of Taylors veteran units were directed to the coast. Left south of Monterrey with a small force, Taylor successfully defeated a much larger Mexican force at the Battle of Buena Vista in February 1847. Landing near Veracruz in March 1847, Scott captured the city and began marching inland. Routing the Mexicans at Cerro Gordo the following month, he drove towards Mexico City winning battles at Contreras and Churubusco in the process. Nearing the edge of the city, Scott attacked the Molino del Rey (Kings Mills) on September 8, 1847, believing there to be a cannon foundry there. After hours of heavy fighting, he captured the mills and destroyed the foundry equipment. The battle was one of the bloodiest of conflict with the Americans suffering 780 killed and wounded and the Mexicans 2,200. Next Steps Having taken Molino del Rey, American forces had effectively cleared many of the Mexican defenses on the western side of the city with the exception of Chapultepec Castle. Situated atop a 200-foot hill, the castle was a strong position and served as the Mexican Military Academy. It was garrisoned by fewer than 1,000 men, including the corps of cadets, led by General Nicols Bravo. While a formidable position, the castle could be approached via a long slope from Molino del Rey. Debating his course of action, Scott called a council of war to discuss the armys next steps. Meeting with his officers, Scott favored assaulting the castle and moving against the city from the west. This was initially resisted as the majority of those present, including Major Robert E. Lee, desired to attack from the south. In the course of the debate, Captain Pierre G.T. Beauregard offered an eloquent argument in favor of the western approach which swung many of the officers into Scotts camp. The decision made, Scott began planning for the assault on the castle. For the attack, he intended to strike from two directions with one column approaching from the west while the other struck from the southeast. Armies Commanders United States Major General Winfield Scott7,180 men Mexico General Antonio Lopez de Santa AnnaGeneral Nicholas Bravoaround 1,000 men near Chapultepec The Assault At dawn on September 12, American artillery began firing on the castle. Firing through the day, it halted at nightfall only to resume the next morning. At 8:00 AM, Scott ordered the firing to stop and directed the attack to move forward. Advancing east from Molino del Rey, Major General Gideon Pillows division pushed up the slope spearheaded by an advance party led by Captain Samuel Mackenzie. Advancing north from Tacubaya, Major General John Quitmans division moved against Chapultepec with Captain Silas Casey leading the advance party. Pushing up the slope, Pillows advance successfully reached the walls of the castle but soon stalled as Mackenzies men had to wait for the storming ladders to be brought forward. To the southeast, Quitmans division encountered a dug-in Mexican brigade at the intersection with the road leading east into the city. Ordering Major General Persifor Smith to swing his brigade east around the Mexican line, he directed Brigadier General James Shields to take his brigade northwest against Chapultepec. Reaching the base of the walls, Caseys men also had to wait for ladders to arrive. Ladders soon arrived on both fronts in large numbers allowing the Americans to storm over the walls and into the castle. The first over the top was Lieutenant George Pickett. Though his men mounted a spirited defense, Bravo was soon overwhelmed as the enemy attacked on both fronts. Pressing the assault, Shields was severely wounded, but his men succeeded in pulling down the Mexican flag and replacing it with the American flag. Seeing little choice, Bravo ordered his men to retreat back to the city but was captured before he could join them (Map). Exploiting the Success Arriving on the scene, Scott moved to exploit the capture of Chapultepec. Ordering Major General William Worths division forward, Scott directed it and elements of Pillows division to move north along the La Verà ³nica Causeway then east to assault the San Cosmà © Gate. As these men moved out, Quitman re-formed his command and was tasked with moving east down the Belà ©n Causeway to conduct a secondary attack against the Belà ©n Gate. Pursuing the retreating Chapultepec garrison, Quitmans men soon encountered Mexican defenders under General Andrà ©s Terrà ©s. Using a stone aqueduct for cover, Quitmans men slowly drove the Mexicans back to the Belà ©n Gate. Under heavy pressure, the Mexicans began to flee and Quitmans men breached the gate around 1:20 PM. Guided by Lee, Worths men did not reach the intersection of the La Verà ³nica and San Cosmà © Causeways until 4:00 PM. Beating back a counterattack by Mexican cavalry, they pushed towards the San Cosmà © Gate but took heavy losses from the Mexican defenders. Fighting up the causeway, American troops knocked holes in the walls between buildings to advance while avoiding Mexican fire. To cover the advance, Lieutenant Ulysses S. Grant hoisted a howitzer to the bell tower of the San Cosmà © church and began firing on the Mexicans. This approach was repeated to the north by US Navy Lieutenant Raphael Semmes. The tide turned when Captain George Terrett and a group of US Marines were able to attack the Mexican defenders from the rear. Pushing forward, Worth secured the gate around 6:00 PM. Aftermath In the course of the fighting at the Battle of Chapultepec, Scott suffered around 860 casualties while Mexican losses are estimated at around 1,800 with an additional 823 captured. With the citys defenses breached, Mexican commander General Antonio Là ³pez de Santa Anna elected to abandon the capital that night. The following morning, American forces entered the city. Though Santa Anna conducted a failed siege of Puebla shortly thereafter, large-scale fighting effectively ended with Mexico Citys fall. Entering into negotiations, the conflict was ended by the Treaty of Guadalupe Hidalgo in early 1848. The active participation in the fighting by the US Marine Corps led to the opening line of the Marines Hymn, From the Halls of Montezuma...

Pullotion Essay Example | Topics and Well Written Essays - 750 words

Pullotion - Essay Example Here comes the main problem of this millennium: the insane destruction of the environment, as we think that we are in secure, which is far from the truth. A warm evening in a fun and friendly company once has completely changed my inner world. One day my friends and I after dinner in the restaurant decided to walk along the coast. We were laughing and having fun, and nothing seemed to be able to change that. But this time the coast wasnt pleasant. Everywhere were dead swollen fish, black sand and the stench in the air. The childhood memory has arisen, though it was more than 15 years ago. It was a bright sunny day. I was looking forward to go with my parents to our favorite place on the Persian Gulf. Finally, it was the long-awaited meeting with the sea. I run to the shore, but everything was not as usual. Ugly oil stains fettered once azure water. On the white sand blackened terrible spots, and around were lying suffocated fish and black bodies of birds. Seagulls with feathers stuck together could not take off. The place which once was beautiful now has resembled an apocalyptic picture. I picked up a dying bird, trying in any way to help her and could not hold back my tears. Mom said it was all because of war, but then I could not even understand the full horror of the word. War destroys our lives, suddenly breaking into a cozy and familiar world. Even if the military battles are not taking place around of you, the horrors of war will catch you up in a place which seems to be rather peaceful. Thus, the large oil reserves are not only the Gods blessing. It is these deposits of oil which became a stumbling block between Iraq and Kuwait. On August 2, 1990 the territory of Kuwait was invaded by numerous Iraqi soldiers and Iraq announced the annexation of Kuwait. Hundreds of thousands of people fled the country; thousands of the remaining were arrested or killed. Iraqis looted or burned almost all civilian objects and set fire to 700 oil wells. Almost a year after

The Organizational Structure, Work Culture and Global Business Essay

The Organizational Structure, Work Culture and Global Business Strategies of Google Inc - Essay Example The study is based on the discussion of different management issues faced by Google Inc. in the China market. It will illustrate various challenges faced by the organization to properly run their operation as per the social and ethical norms of China. The main objective of any management is to achieve the ultimate goal of the organization by motivating and directing the workforce. The modern management practices influence managers to focus on different requirements of the stakeholders of various countries. There are a number of management issues faced by global organizations such as economic, political, social and technological. Recession, inflation and currency fluctuation of different countries can provide the significant effect on the business management procedure of global organizations. The difference in the political rules and regulations also affect the decision-making capacity of the managers. Management needs to cope up with the rapid development of technologies in the diffe rent market to attract more customers. International organizations need to focus on the differences in the social structure of their operating countries before introducing any product or services. The decision of product or services design can differ as per locations due to the changing preferences of local people Customized products of local organizations can provide huge competition to the standardized products of the global organizations.

Historical and Scientific Perspectives on Homosexuality Essay Example for Free

Historical and Scientific Perspectives on Homosexuality Essay Historical and scientific perspectives have molded homosexuality, and the way homosexuals are viewed by themselves and others. In past western society ancient Greece, homosexual teachings were performed by the Greek society, and were thought of as a societal norm Younger males were normally seen in a homosexual relationship with an older male, these types of relations were common in ancient Greece. The way Greek perceived life back in ancient times it is starting to ease up in our modern time, and homosexuality is beginning to be viewed as if we were in ancient times especially among western countries. In modern time homosexuals are learning to cope with their homosexuality, as it is beginning to be seen as something normal that has been here since ancient times for thousands of years. Homosexuality in the ancient Greek society shows that even back then people were aware of the different sexual behaviors and feelings certain people might have, and even back then they accepted people’s individual sexual choices. In modern day when a homosexual is first coming out and announcing his way of life he/she should be proud of what they are doing because it is something that has been going on for thousands of years, and is not something to be ashamed and secretive about. Homosexuals should not let judgmental people get to them by saying you were born that way or the environment influenced you to behave like that. The truth is the truth and you are who you are nothing can or will change that is if we stay true to our self. This means as long as we know where we came from and who we ar e why should we let peoples words bother us because we know the truth about our self. As we move along, back to ancient Greece and now also including the people of ancient Rome’s homosexuality. In both of the cities ancient Greece/Rome men would travel the streets of the city looking for someone to rock their world. On top of roaming the streets for some good quality male bonding they would dress and act as if they were not men, but female. This was look at in disapproval and unacceptable that is why when the religion of Christianity increased and started to grow the downfall of ancient Rome followed, and homosexual relations were banned. The new found law prohibited sexual behavior that was not found normal. Normal sexual behavior being male-female  and marriage any other acts of sex, and the people would be punished for their actions. This law continued for many years to follow, and people were committed and punished if they broke the law. Unfortunately this did not stop homosexuals from expressing their homosexuality they just became more discrete about it, so they would not see punishment from their actions. Today, most modern religions still do not approve of homosexuality seeing it as a sin. Some countries are very religious, and prohibit homosexual activity; those that are found guilty will be severely punished. The view that is seen on homosexuality in the modern day has been seen for thousands of years. That is why some homosexuals are afraid to accept their sexuality because of religious reasons (punishment from god) and society (disapproval). The hatred that is forced upon gay individuals has made it very difficult for them to be accepted among society. In our society it is normal when found to be gay to be criticized for it, and deal with harsh treatment that a straight person accepted in society would not have to deal with. When found to be a gay individual they even may have to change their church to one that accepts the view of a homosexuality. When growing up we learn that homosexuality is unnatural and not the right way of life that is not the case it is completely natural. Unfortunately many times in the beginning a homosexual might not know what they are experiencing wondering why they are different, and if it is alright they could grow to hate them self for it thinking that they are not normal. In modern time many countries still punish homosexuals, while others are more accepting they just deny homosexuals the right to marry due to religious reasons. That is all slowly changing and I think in the future will be seen differently. The scientific views on homosexuality are homosexuals inborn or is it caused due to environmental influences. That is a question that have been asked and wondered for many years, but in modern days there is evidence directing us towards homosexuality developing as an inborn characteristic. Research done on both identical and fraternal twins, show that there are higher concordance rates of gay monozygotic twins. Rathus, Nevid, and Fichner-Rathus, (2005) report that about â€Å"52% of identical (MZ) twin pairs were found to be â€Å"concordant† (in agreement) for a gay male sexual  orientation, compared with 22% of fraternal (DZ) twins and only 11% of adoptive brothers† (p. 312). Also, evidence has suggested that hormonal influences could be responsible for differences in sexual orientation. Rathus, Nevid, and Fichner-Rathus (2005) explain that prenatal sex hormones be responsible for tissues in the brain to think sexually one way, but for genital development to be the other way. Also, structural examinations on the brains of heterosexual and homosexual males have provided speculative evidence that a part of the hypothalamus in gay males is smaller than that region of the hypothalamus in heterosexual males. Developing an understanding from the scientific view point on homosexuality has helped homosexuals understand why they are the way they are. Before scientific studies provided the information that homosexuality could be due to inborn, many individuals believed that people decided to be homosexuals. After the scientific studies though that thought is seen as false, and the reason why people become homosexuals is because they are born that way. Homosexuals do not choose their sexual path they are born having sexual arousals from the same sex. Homosexual people do not hate them self as much knowing the facts from the scientific studies that they were born that way, rather than choose to be that way now they feel it is how god wanted they to be and they can accept them self’s. Out The Closet and Accepting Who they are The biggest goal to overcome when being a homosexual is when the perfect time to come out the closet, and admit to our family and friends (hey I’m a homosexual). Not only is finding the perfect time hard to find, but also finding the right words to use when telling them you are not just going to say hey I’s a homosexual. Another difficult obstacle to overcome is accepting the different view we will see from society when coming out. Many homosexuals are afraid to tell friends and family because they have not completely grasped the concept of what they are. This is especially seen in someone who is transformed from heterosexual to homosexual. Another thing  that bobbles around their thoughts when coming out is that they will lose important people in their life or lose their job. Coming out or letting people into your homosexuality is a very challenging experience that is one of the most difficult task a homosexual will face. One of the most common deaths an early homosexual faces is suicide normally for one of two reasons understanding their new sexuality or the fear of coming out to other people about it. Once a homosexual takes control of their power and accepts the fact they are living a life of homosexuality they can adjust to what society expects from them. After they can accept what society thinks of them they can form a relationship with an intimate partner, and develop a perfect homosexual lifestyle. Historical and Scientific Views Reflected on Personal Sexuality One’s personal sexuality has been molded and determined by history and scientific views that are seen in one’s life culture or society. Historical and scientific views reflected the way people see their own personal sexuality for the better. It has helped homosexuals better understand why they are the way they are, and they are not different that throughout time there has been people of the same sexuality facing the same problems. In modern time the punishment might not be as harsh as back in ancient time, but it is still there and seen. Homosexuality is still frowned upon by many, and many also criticize and harass homosexuals because of their difference in behavior. In the future with homosexuality become more open and known about to the public I think that schools should teach about it at an earlier age to help the younger society better understand it. Homosexuality in most cases is misjudged and treated in the wrong way if people learned about it at an earlier age t hey could learn to have a kinder understanding, and be more accepted of homosexuals. Another benefit of teaching it at an earlier age is that it would give people the benefit of know why they are the way they are, and if they feel they are different.Homosexuality has been around for thousands of year before Christianity it was accepted freely, but after the religion started growing rules banned homosexuality from being free. Homosexuals had to live in the shadows hiding who they were afraid of society, and how they would be treated and the punishment they would receive  if found to be homosexuals. Throughout time the harsh treatment homosexuals faced has not ended it is becoming more in the open, and they are beginning to be accepted for who they are. Homosexuality is not always chosen it is sometimes something we are born being we cannot help they way we feel, but that does not make us different. Our sexuality might not be the same as everyone else’s, but neither are their sexuality to ours. Reference Rathus, S.A., Nevid, J.S., and Fichner-Rathus, L. (2005). Human sexuality in a world of diversity. (6th ed.) Boston, MA: Allyn and Bacon.

Sir Gawain - The Noble Knight :: Sir Gawain and the Green Knight

Sir Gawain - The Noble Knight Sir Gawain is a nephew of King Arthur and the brother of Sir Gaheris and Sir Gareth. In the poem he is described by the author as "the good knight" and "most courteous" (1. 109,639). His character is shown through supernatural tests when he steps in for King Arthur and takes the challenge of the Green Knight on himself. Then his second test in the poem is to withstand the lust of the Green Knight's wife. Both of these challenges Sir Gawain passes, and gains more respect and honor than he had before. The tasks that he accomplishes prove once more the true Gawain and help the reader to understand his character more clearly. Sir Gawain is a hero in the poem, and as always, heroes have to overcome all their foes and many dangers. The same heroism and presence of supernatural forces are also found in Beowulf. Beowulf fights with dangerous enemies and creatures all around him. On his way to the Green Knight's chapel, Sir Gawain encounters many wonders and monstrous foes: "So many were the wonders he wandered among ... Now with serpents he wars, now with savage wolves ... And giants that came gibbering from the jagged steeps ... He had met with many mishaps and mortal harms" ( 2.718-725). As we see the author shows his character as a mighty warrior, maybe even with supernatural power. Yet it is not clear how he could fight with giants and was afraid at the first sight of the Green Knight. As author describes the Green Knight, "Half a giant on earth I hold him to be..." (1.140). If he is half a giant and later we see that Sir Gawain is fighting with giants, it is not clear here why everyone in Camelot at first is afraid of the Green Knight. Sir Gawain appears, as a real hero and a noble knight, almost from the very beginning of the poem when he is accepting the challenge of the Green Knight. No one is brave enough to accept the beheading game proposed by the Green Knight, and if no one of the knights will accept the challenge, then king Arthur has to accept it, so that he and his knights will not be regarded as cowards. Sir Gawain, as a noble knight who truly serves his king, takes the challenge upon himself when he says to the Arthur, " Would you grant me the grace"

Assessing the Essence of Teh Eclectic Paradigm Essay

Aspects frequently highlighted include global media and telecommunications, global brands, worldwide production and integrated financial markets. At the forefront of these phenomena are Multi National Enterprises (MNEs), benefiting from the opening of markets across the globe, and from advances in computing and internet technology, which make it possible to link far-flung activities in global networks. Considering these elements, globalization can further be defined as the process of increasing and deepening interactions between individuals and organizations across the globe, facilitated by advancing communications technology and the opening of markets to trade and investment. Theories of International production have attempted to explain the convergence towards a globalised world, while addressing the different types of international expansions. These theories have focused on MNEs and Foreign Direct Investment (FDIs). FDI can be defined as investment by an organization in a business in another country, with a view to establishing production in the host country. While Raymon Vernon is known for his theory of Product life cycle, Stephen Hymer laid emphasis on the location and ownership advantages of countries, which helped in attracting FDI from MNEs. John Dunning incorporated Internalisation to the analysis of Hymer, which became known as the Eclectic Paradigm (or OLI Paradigm), one of the most comprehensive theoretical explanations with specific focus on FDI. Still the Eclectic Paradigm is being challenged in the modern globalised world, as it fails to take into account the implications of existing modes of entry of MNEs, as well as the advantages of Alliance Capitalism. It is being discussed further in this report. Theories of International production have greatly facilitated the understanding of the globalization phenomenon. Different theorists at different time intervals attempted to justify the expansion of MNEs across the globe. Hymer (1970) was the first one to propose that MNEs are institutions of international production rather than international capital movement. Still he ignored the natural imperfections attributed to transaction costs in an imperfect market. In today’s world, with the proliferation on Internet use, imperfections like bureaucratic hurdles and control of distribution systems (Bain, 1956) are absent. Even the imperfections like price determinism and information transfer are shrinking. Thus it can be argued that Hymer’s major contribution relating to the importance of structural market imperfection in determining FDI activity does not hold good for corporations, which are expanding globally through e-channels (for instance). Vernon (1966) came up with the International Product Life Cycle (IPLC) theory, which explained the locational dimension of FDI. According to him, production first starts in the home country fro local markets, and exporting is used to attain foreign markets. As the product matures and production is standardized, production moves to less developed countries to reduce labour costs. The basic assumption of the IPLC is that knowledge is not equally and universally distributed (Vernon, 1966). This assumption, however, is not applicable in today’s world, as Vernon (1979) himself admits that there is a more perfect distribution of knowledge across the globe. He argues that firms who are global scanners follow a different trend than that of the IPL approach, because such firms have the ability to effectively scan global markets for the best factor endowments. Though, a lot has been discussed and said on the theories of International production, yet none of the approaches (Hymer, Vernon, Barney) simultaneously explains the importance of resources heterogeneity, entrepreneurial competence, network governance and the rise of alliance capitalism. Thus, an overarching analytical framework is needed, that can synthesize these disparate views and account for the importance of location- based advantages and ownership advantages. Such a framework was developed by Dunning (1973; 1988; 1993) known as The Eclectic Paradigm. It is a framework that explains the growth of MNEs by bringing together disparate theories. According to Dunning, the Eclectic Paradigm is less of an alternative theory of International production and more of a framework that synthesizes the essential and common characteristics of each main theoretical explanation on the growth of MNEs. For more than two decades the Eclectic Paradigm (EP) remains a widely used general framework for studying the growth of MNCs and Dunning has also continuously revised and extended the EP to explain changing facets of MNCs. Dunning (1988) has re-stated that the EP is robust and general enough to incorporate future developments like renewed the focus on entrepreneurship and the emergence of global networks (Dunning, 1995). The Eclectic Paradigm explains that the Foreign Direct Investment (FDI) and growth of multinational corporations (MNCs) is linked to the extent and nature of ownership-specific advantages of the firm, the extent and nature of location bound endowments, and the extent to which markets for these advantages are best internalized by the from itself. In short, it is the configuration of these Ownership (O), Location (L) and Internalization (I) advantages that determines a firm’s international production and growth. In a somewhat updated version, Dunning (1988) describes the three essential factors for international expansion: * Ownership Advantages are unique competitive or monopolistic advantages, typically developed in the home market, that permit the firm to compete successfully in overseas markets. These factors are of two types: Asset Advantages arise from proprietary ownership of unique assets protected by structural market distortions, and Transactional advantages provide a unique capacity to capture value from the transaction benefits of owning a network of assets located in different countries. * Location factors, tied to the local foreign market, which make production in the host country preferable. These are immobile factors, such as cheaper labour, high shipping costs, local image or trade barriers, that can be combined with transferable intermediate ownership assets to generate superior products. Internalisation factors, typically related to the industry, produce transactional market failure in transferring ownership advantages to foreign markets. This also explains the naming of the EP as the OLI configuration as well. The eclectic model, then, pulled together the key elements of neo-classical theory – location, industrial organisation theory – monopolis tic advantage and internalization theory – transactional efficiency. It used this eclectic mix to produce an internally consistent, compelling and testable model of the multinational firm and its strategic processes.