ADMS 3960 Lecture Notes - Lecture 15: Foreign Direct Investment, Cash Flow, Meliá Hotels International

• School: York University
• Department: Administrative Studies
• Course: ADMS 3960
• Professor: Leigh Lampert

Document Summary

Must either handle ib operations on their own or collaborate with other companies. Exporting usually preferred (produce at home) but sometimes, must use other arrangements: Wholly owned operations, partially owned subsidiaries, joint ventures, equity alliances, licensing, franchising, management contracts, and turnkey operations. Melia hotels international is a spanish hotel chain founded by gabriel escarre in 1956, leasing his first hotel in majorca. O(cid:374)e of pai(cid:374)"s la(cid:396)gest do(cid:373)esti(cid:272) ope(cid:396)ato(cid:396)s of holiday (cid:396)eso(cid:396)ts, a(cid:374)d the (cid:1005)7th biggest hotel chain worldwide. 80% of income comes from its international operations. International expansion has been the result of a variety of investment and collaborative strategies. May be more advantages by producing in foreign countries rather than by exporting to them: Transportation may be expensive, rendering export impractical/impossible (e. g. think of. If domestic products need to be customized for foreign markets, often more efficient to manufacture there. Many manufacture abroad to serve foreign markets and avoid trade barriers (e. g. import restrictions)