MGC2120 Lecture Notes - Foreign Direct Investment, Eclectic Paradigm, Kodak
20 Jan 2017
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International business foreign direct investment and the. However, operating in different countries can cause conflict to arise. Horizontal direct investment: invest overseas eg: toyota australia. An interest industry is mining. Forward: invest in a country that represent a sales/distribution of that country. Eg: toyota opens a sale branch and sell cars through that channel. Firms might have to work on individual assignment but there are hardly any problems in terms of coordination problems. Eg: 100% control of your work if you operate by yourself. Mergers and acquisition: form a partnership/buy a company in a foreign country. Developed nations: find more suitable partners, support network, resources already established. Don"t have to invest much, don"t have to build anything from scratch. Alternatives to fdi: due to transportation costs, trade barriers. Do not allow firm over control the process, different levels of control required.
