FINS3616 Lecture Notes - Lecture 1: Capital Account, Deflation, Mexican Peso Crisis
Document Summary
Appendix 1a: the origins and and finance. 3. 2, 3. 3, 3. 4: only content covered in. 5. 2, 5. 3: only content covered in lecture. Mnc"s existence is based on the international mobility of factors of production and carrying over skills and resources to other countries. Countries are becoming increasingly homogenous in terms of production factors. Firms" abilities to transfer skills and resources are crucial for competitiveness. Differences in firms" abilities to use globally available resources and skills is more important for international competitiveness than macroeconomic differences between countries. Often possess unique products, processes, technologies, skills that can be transferred to foreign markets. Seek lower cost production in foreign countries to remain cost competitive. Enter foreign markets to gain information that can be used elsewhere (e. g. production processes). Guaranteeing a continuing product flow across countries. A company that produces and distributes goods and/or services in more than one country. Usually consists of a parent headquarter firm and a number of foreign subsidiaries.
