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Korea and Taiwan to provide athletic shoes
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 MessaggioInviato: 21 Giu 2019 08:53:37  Korea and Taiwan to provide athletic shoes
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  jonassmedley

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italy

Any method
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that requires a one on one investment in foreign operations is referred to as a foreign direct expense. International trade and licensing is not accepted as FDI because it doesn`t need direct investment in international operations. Franchising and joint projects involve some investment but to your limited degree.

Acquisitions and new subsidiaries
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require large investment therefore represent a large proportion of FDI. Many International Companies use combining methods to increase intercontinental business. For example the development of Nike began in 1962 2 business student at Stanford`s small business school, wrote a paper on how a OUGH. S. firm could use Japanese technology to break the German dominance of the athletic shoe industry in the nation.

After graduation, he visited
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the Unitsuka Tiger casino shoe company in Japan. He made a licensing settlement with that company to produce a shoe that he sold in the nation under name Blue Bow Sports (BRS). In 1972, they exported his shoes to Canada. In 1974, they expanded his operations straight into Australia. In 1977, the corporation licensed factories in Korea and Taiwan to produce athletic shoes and subsequently sold them in Asian countries.

In 1978, BRS became Nike, Inc.,and began to export
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to Europe and Southern America. As a result of its exporting and its direct foreign expenditure, Nike's international sales arrived at $1billion by 1997 even more than $7 billion by 2010.

A decision of exactly why companies undertake FDI as compared to other modes of entry can be explained by OLI paradigm. The paradigm tries for you to explain why companies choose FDI in comparison with other modes of entry
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such as licensing, shared ventures, franchising.
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