highlights the three major motivations for FDI that are Ownership advantage, Location advantage, and Internalization advantages. (e.g. Question 10)
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OWNERSHIP ADVANTAGE IS ABOUT....
existing capabilities in the company that gives confident to the company to rely on these capabilities to internationalise
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internalisation...
is opposite of ‘outsourcing’. In Internalization, a company prefers to produce its own products or provide its own services to protect its unique core competencies (a patent, top quality, tacit knowledge, …).
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location advtnage is about....
attractions of foreign countries (q 11)
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due to them having... (3)
Plenty of affordable natural resources that the company needs for production • Many low-cost and/or highly skilled labor • Low taxes; knowledge “spillovers”of other similar firms in the same location
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Other cards in this set
Card 2
Front
OWNERSHIP ADVANTAGE IS ABOUT....
Back
existing capabilities in the company that gives confident to the company to rely on these capabilities to internationalise
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