Beruflich Dokumente
Kultur Dokumente
Introduction
McGraw-Hill/Irwin
Learning Objectives
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Explain globalization and discuss Factors. Discuss theories of trade. Distinguish. Discuss how MNCs facilitate globalization and special risks faced by them. Compare US and other governance models. List international financial management issues.
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Factor conditions Demand conditions Related and Supporting Industries Firm Strategy, Structure and Rivalry
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OLI model:
Ownership Advantages: firm has specialized assets Location Advantages: input availability, low taxes, etc. Internalization Advantages: in-sourcing more advantageous than outsourcing
Knowledge-Capital model:
Knowledge capital can be transferred crossborder much easier than physical capital (foreign subsidiaries can be created easily) Skilled labor is important, usually abundant in the home country of MNC
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MNCs are large with dispersed operations (monitoring and control are difficult) MNCs produce and sell a large number of products (complexity provides opportunity for managers to deviate from overall goals) MNCs are typically highly de-centralzied (unit-level managers have more power, can be abused)
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