ch16 - and integration THE STRATEGY OF THE MNC 4 FDI and...

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Multinational Financial Management Alan Shapiro 9 th Edition Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton
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CHAPTER 16 Corporate Strategy and Foreign Direct Investment
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THE THEORY OF THE MULTINATIONAL CORPORATION I. THE THEORY OF THE MULTINATIONAL CORPORATION A. The MNC as an Oligopolist: 1. When is FDI justified? 2. Internalization 3. Market Integration a. Vertical b. Horizontal
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THE THEORY OF THE MULTINATIONAL CORPORATION B. Financial Market Imperfections 1. Hypothesis 2. Diversification Effect of the MNC
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THE STRATEGY OF THE MNC II.THE STRATEGY OF THE MNC A. Three strategies: 1. The Innovation-based MNC
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THE STRATEGY OF THE MNC Strategies (con’t) 2. The Mature MNC a. the importance of economies of scale and b. economies of scope
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THE STRATEGY OF THE MNC 3. The Senescent MNC a. global scanning capability b. the role of rationalization
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Unformatted text preview: and integration. THE STRATEGY OF THE MNC 4. FDI and Survival a. Cost reduction b. Economies of scale c. Multiple sourcing d. Keeping domestic customers DESIGNING A GLOBAL EXPANSION STRATEGY III. HOW TO DESIGN A GLOBAL EXPANSION STRATEGY There are 5 Necessary Elements DESIGNING A GLOBAL EXPANSION STRATEGY A. 5 Necessary Elements 1. Awareness of profitable investments-building competitive advantage 2. Selecting a mode of entry-evaluate systematically 3. Adjusting the Effectiveness of the Entry Mode- continual auditing DESIGNING A GLOBAL EXPANSION STRATEGY A. 5 Necessary Elements (con’t) 4. Using appropriate evaluation criteria 5. Estimating the longevity of competitive advantage: a. Develop competitive strength transferable overseas. b. Not easily duplicated...
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ch16 - and integration THE STRATEGY OF THE MNC 4 FDI and...

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