December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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170 International Business
■ Eciency-seeking FDI aims to take advan-
tage of dierent factor endowments, economic
systems, policies, and market structures to con-
centrate production in a limited number of loca-
tions and reduce cost of operation. It attempts to
rationalize the structure of established resource-
based or marketing-seeking investment in such
a way that the firm can gain from the common governance of geographically dispersed activities.
Eciency gains are the results of synergies arising out of the pooling of management resources,
and revenue enhancement is through the use of common facilities and the economies of large-scale ...
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