MODELS OF THE MULTINATIONAL-ENTERPRISE

Flexibility is identified as the hallmark of recent modelling of the m ultinational enterprise. The focus on flexibility is a response to the rationalization and restructuring of international business, which ha s occurred since the end of the ''golden age'' of Western economic gro wth. Flexibility has been sought in factor markets, intermediate produ ct markets and market for final products. It has been sought by both g overnments and firms. Flexible are attracted to locations with flexibl e host governments This article contrasts the modern research agenda b ased on flexibility with the more traditional research agenda which pr edominates in the literature reviewed by Caves (1996).