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julianjeremy Nuovo

Iscritti

Registrato: 25/06/19 03:33 Messaggi: 7
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The actual OLI paradigm states that Solo gli utenti registrati possono vedere i link! Registrati o Entra nel forum! | a company first have to have "O"- owner specific competitive advantage in the home market which can be transferred into a foreign market. Then the company has to be attracted by "L"- location specific characteristics of your foreign market.
These characteristics might include less costly of raw materials and also labor, a large family market, unique sources regarding raw materials, or sophisticated technological centers. Location is vital because the company Solo gli utenti registrati possono vedere i link! Registrati o Entra nel forum! | have different FDI causes. By relying to location characteristics it could pursue different FDIs. It could implement either horizontal as well as vertical FDIs.
The horizontal FDI occurs if a company locates a plant abroad as a way to improve its market having access to foreign consumers. Vertical FDI, by contrast, is not mainly or even necessarily aimed at selling in Solo gli utenti registrati possono vedere i link! Registrati o Entra nel forum! | a foreign country however to cutting costs by using lower production costs generally there. The "I" stands with regard to internalization.
According to the theory the business can maintain its cut-throat advantage if it fully controls all the value chain in the industry. The fully run MNC minimizes agency fees resulted from asymmetric Solo gli utenti registrati possono vedere i link! Registrati o Entra nel forum! | information, loss of trust, monitoring partners, suppliers and lenders.
Self financing eliminates monitoring of debt contracts on foreign subsidiaries which are financed locally or by simply joint ventures. If an agency has a low international cost and high availableness of capital why share it with Solo gli utenti registrati possono vedere i link! Registrati o Entra nel forum! | joint ventures, manufacturers, distributers, licensees, or neighborhood banks that probably own higher cost of cash. |
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