MNEs strive to take advantage of market imperfections in national markets for products, factors of production, and financial assets. Large international firms are better able to exploit such imperfections. What are their main competitive advantages?
Answer to relevant QuestionsIn deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. What are the necessary characteristics ...The decision about where to invest abroad is influenced by behavioral factors. a. Explain the behavioral approach to FDI. b. Explain the international network theory explanation of FDI. Capital projects provide both operating cash flows and financial cash flows. Why are operating cash flows preferred for domestic capital budgeting, but financial cash flows given major consideration in international ...Assuming the flow illustrated in Exhibit where does transaction exposure begin and end if inputs are purchased with one currency at t1, and proceeds from the sale are received at t5? Is there more than one interval of ...What are the advantages of a free trade zone? Are there any disadvantages?
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