The Multinational Enterprise

*
* Benjamin Romo Velasco
* the Multinational enterprise
Professional MBA, Danube University
Prof. Robert Hayward

Student number:
# 1064255

Questions/Answer
1.-
a) What ar the benefits of using a strategy of direct investment as a method of entering a country compared to merc mountainise? Give some recent examples of firms that be possessed of used this approach. What problems have they faced?

The potential personal effects may be seperated into supply-increasing effects (capacity effects) and FDI-specific effects. The supply-increasing effects arise when FDI inflows induce increases in the host countrys employment capacity, which, in turn, increases export supply capacity.
On the other hand FDI effects arise due to inappropriate capital inflows which may incorporate unalike competitive advantages, such(prenominal) as brilliant knowledge and technology and thus, higher productivity, or better tuition about export markets as compared to local firms. The differentiation amidst these two effects of FDI on exports is especially important in terms of policy implications.




The FDI increases exports by only increasing the export supply capacity, then FDI inflows are not special in that policymakers could increase exports through alternative means as wholesome, such as promoting domestic investment, rather than FDI. If, on the other hand, wiz finds that there are direct FDI-specific corroborative effects of foreign capital inflows on exports
In opening within transnational enterprise such decisions may have consequences for the host countrys exports and ane goal of the following section is to review parts of this theory that predict effects of inward FDI on host countrys exports.

This positive effects of inward FDI on a host countrys exports may be expected when the host country as well as the a home country have different factor intensities. In this case, the MNE may outsource some segments of its exertion process to the host country and export these (intermediate) products back...If you want to procure a full essay, order it on our website: Ordercustompaper.com



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