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International Contracting

In: The Management of Construction Firms

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  • Howard Seymour

Abstract

The primary objective of this chapter is to integrate those aspects of international construction, some of which have already been mentioned, within a framework of international production economics. The theory of foreign direct investment (FDI) is arguably the most useful tool for this purpose. It allows detailed economic analysis of the firm in an international competitive context and includes the influence both of the country of origin of the enterprise (the ‘home country’) and the country in which the enterprise is located (the ‘host country’). The analysis is founded upon the eclectic paradigm put forward by Dunning.’ This is an approach which selects the relevant parts of various economic theories and adapts them to analyse and explain the behaviour of international production units, notably the multinational corporation. The framework provides a synthesis of existing theories of FDI and it is a particularly useful vehicle for the industry-specific investigation of international competition in both a micro and macro context. This chapter presents a summary of the eclectic approach, together with the application of the theory to international contracting in Section 4.2. Some policy implications are given in Section 4.3.

Suggested Citation

  • Howard Seymour, 1989. "International Contracting," Palgrave Macmillan Books, in: Patricia M. Hillebrandt & Jacqueline Cannon (ed.), The Management of Construction Firms, chapter 4, pages 44-56, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-13626-1_4
    DOI: 10.1007/978-1-349-13626-1_4
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