Unformatted text preview: MNCs o Transaction costs o Tacit knowledge o Asset specificity o Oligopolistic rent seeking • Yes, “sociological” or individual factors: managers want firms to expand—they get more perks and power (influence) “OLI” Model for FDI 1. Ownership specific advantages of TNC control 2. Location specific advantages of Host 3. Advantages of Internalization a. IF: only #1 then licensing, exportsm etc. . 4 Types of of MNC’s • Internationalization (mostly raw materials – shallow, mostly horizontal GCC) • Multinationalization (local market manufacturing—shallow, horizontal, no GCC) • Transnationalization (glocal manufacturing vertical GCC’s) •...
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- Fall '11
- Economics, different countries, location specific advantages, new factory/ firm, manufacturing vertical GCC, Ownership specific advantages