5 in a short essay discuss the various reasons that

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5) In a short essay, discuss the various reasons that companies export, list some of the potential pitfalls of exporting. Internationalization helps companies grow and become more competitive. When management decides to internationalize they do so for various reasons such as limited risk, expense and knowledge of foreign markets and transactions. Exporting Is the entry strategy responsible for inflows and outflows of constitute global trade, and generates large foreign exchange for nations. Some pitfalls exist when exporting including not securing cash flow/financing, shipping agreements, currency costs, not researching the markets, finding intermediaries. Ignoring foreign distributors when local demand is high, poor choice of agent or distributors and failing to consult with export. Chapter 14: Foreign Direct Investment and Collaborative Ventures 1) Companies can either buy existing company or build new facilities. In short essay describe the advantages and disadvantages of each alternative. 2) To survive a company must satisfy a various groups, which are called stakeholders, briefly discuss the various groups that make up company’s stakeholders. 3) In short essay discuss the economic impact of MNE on both home and host country citing gains and losses for each country. 4) Briefly explain FDI motivation to achieve sales expansion and to acquire resources. 5) What are the major motivations for undertaking FDI? 8
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HOMEWORK ASSIGNMENT 1: CHAPTER 1-7, 15 The major motivations for undertaking foreign domestic investment include market seeking motives, decrease in cost of mancufacturingresource or asset seeking motives and efficiency seeking motives. 9
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