chapter 16
Download
Skip this Video
Download Presentation
CHAPTER 16

Loading in 2 Seconds...

play fullscreen
1 / 9

CHAPTER 16 - PowerPoint PPT Presentation


  • 91 Views
  • Uploaded on

CHAPTER 16. Corporate Strategy and Foreign Direct Investment. THE THEORY OF THE MULTINATIONAL CORPORATION. I. THE THEORY OF THE MULTINATIONAL CORPORATION A. The MNC as an Oligopolist: Why FDI? 1. When is FDI justified? 2. Internalization 3. Market Integration a. Vertical

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' CHAPTER 16' - mahlah


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 16

CHAPTER 16

Corporate Strategy and Foreign Direct Investment

the theory of the multinational corporation
THE THEORY OF THE MULTINATIONAL CORPORATION
  • I. THE THEORY OF THE MULTINATIONAL CORPORATION
  • A. The MNC as an Oligopolist: Why FDI?
  • 1. When is FDI justified?
  • 2. Internalization
  • 3. Market Integration
  • a. Vertical
  • b. Horizontal
the theory of the multinational corporation1
THE THEORY OF THE MULTINATIONAL CORPORATION
  • B. Financial Market Imperfections
  • 1. Hypothesis
  • 2. Diversification Effect of the MNC
the strategy of the mnc
THE STRATEGY OF THE MNC
  • II. THE STRATEGY OF THE MNC
  • A. Three strategies:
  • 1. The Innovation-based MNC
the strategy of the mnc1
THE STRATEGY OF THE MNC
  • Strategies (con’t)
  • 2. The Mature MNC
  • a. the importance of economies of scale and
  • b. economies of scope
the strategy of the mnc2
THE STRATEGY OF THE MNC
  • 3. The Senescent MNC
  • a. global scanning capability
  • b. the role of rationalization and integration.
the strategy of the mnc3
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
DESIGNING A GLOBAL EXPANSION STRATEGY
  • III. DESIGNING A GLOBAL EXPANSION STRATEGY
  • 5 Necessary Elements
designing a global expansion strategy1
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
  • 4. Using appropriate evaluation criteria
  • 5. Estimating the longevity of competitive
  • advantage:
  • a. Develop competitive strength
  • transferable overseas.
  • b. Not easily duplicated
ad