Chapter15 : Forms and Ownership of Foreign Production (Why exporting may…
Chapter15 : Forms and Ownership of Foreign Production
Why exporting may not be feasible ? (Indeed, companies mayfind more advantages by producing abroad than by exporting to them)
When production abroad is cheaper than at home
When transportation costs to move goods or services internationally are too high
When companies lack domestic capacity
When governments inhibit the import of foreign products
When buyers prefer products originating from a particular country
What are the reasons of FDI ?
Appropriability : Appropriate ressources from rivals companies.
Freedom to Pursue a Global Strategy
Acquisition versus Greenfield
Why companies collaborate ?
General motives for collaborative arrangements
International motives for collaborative arrangements
Type of collaborative arrangements
Control, prior company expansion, compensation
Problems with collaborative arrangements
Questions of control
Comparative contributions and appropriations