international or localat which scale is most tightly tied to profitability is

International or localat which scale is most tightly

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international, or local—at which scale is most tightly tied to profitability is often a helpful guide to determining what constitutes a region. Basically this literature makes an important contribution to the field by showing that sales and production activities in the MNE are regionally structured, we argue that this assessment is biased for two reasons. First, this approach overly focuses on geographical location of downstream activities, while disregarding that of knowledge creation and other relevant upstream activities in the MNE. Second, the approach associates the firm’s value creation only with its internalized activities and does not capture the value created through any activities that are externalized. Many MNEs rely to a significant extent on value creation outside the firm’s legal boundaries. We argue that such omissions are likely to lead to biased interpretations using different theoretical lenses, such as the knowledge-/resource-based view, internalization theory and more general transaction cost economics. the ‘regional strategy’ stream of literature that highlights the relevance of the region for MNE decision-making. Specifically, proponents of the ‘regional strategy’ perspective claim that most MNE strategies are built around a regional locus, citing evidence from studies in this literature stream that show that by far the largest proportion of sales (74.6 per cent) and assets (75.5 per cent) for the Fortune Global 500 are generated/deployed in the company’s home region (Rug-man and Verb eke, 2008). We do not dispute the empirical results presented in the VA point paper and other major papers of the regional strategy perspective. However, we contend that the conclusions that are drawn from these empirical results are at odds with the reality of today’s complex international business world. We argue that these conclusions arise from some unstated assumptions as well as from a rather narrow inter-predation of transaction cost theory and the resource-based view of the firm. In so doing, the regional strategy literature does not holistically incorporate the workings of global value chains (GVCs) inside and outside a firm’s boundaries. Objective : Regional strategy based on the target for reach the product to the consumers. Globally this chain is processing by a group of team or employee of the organizations. Methodology : Data and necessary information is collected from “Journal of management” Findings : (1)Regional strategy is the process of distribute the product. (2) A combination of relation of internal or external activities of MNEs. Limitation : (1) Lack of available and reliable data (2) Lack of prior resource studies on the topic. iv. Risks and Opportunities of Participation in Global Value Chains
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Since the first industrial revolution, waves of technological improvement have changed the boundary of production and redefined the role of the state. The information and communication technology revolution has not only increased productivity, but has also
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