Transnational Corporations by Ірина Олегівна Давидова https://padlet.com/idavydova/Bookmarks Сделано с долей остроумия en-us 2020-03-14 15:40:14 UTC 2023-02-10 04:52:53 UTC hello@padlet.com Topic 3. Internationalization as a basis of transnational corporations idavydova https://padlet.com/idavydova/Bookmarks/wish/473927390 - Theories of foreign direct investment and TNCs: overview of international trade theory, the theory of foreign direct investment
- The essence and advantages of internationalization. Stability of the internationalization process.]]> 2020-03-25 06:38:41 UTC https://padlet.com/idavydova/Bookmarks/wish/473927390 1. Basis of transnationalization idavydova https://padlet.com/idavydova/Bookmarks/wish/473944619 Prior to the existence of multinationals, private equity crossed national boundaries only in the form of portfolio investment. Only in the 1920s. the trend towards foreign direct investments have began.
Review of International Trade Theories development                   - A. Smith's theory of absolute advantage offers a specialization of each country in the production of the goods it can produce most efficiently, ie at the lowest cost.
-  According to D. Ricardo's theory of comparative advantage, if a country can do each of two commodities more efficiently than another country, it must specialize in the production of relatively more efficient, manufactured goods with great absolute advantage/
- According to Heckscher - Ohlin theory, each country should export those products that are most heavily used in the production of the so-called excesive factor of production.

                                           
]]> 2020-03-25 07:05:04 UTC https://padlet.com/idavydova/Bookmarks/wish/473944619 2. idavydova https://padlet.com/idavydova/Bookmarks/wish/473950673 Foreign direct investment theories
- theory of capital movements : 
states that the company crosses national borders in order to obtain more profit in a foreign country than expected from activities in the domestic market.
- market imperfections theory:   decision to pursue  direct international investments is dictated mainly by a desire to take advantage of advantages that are not available to national firms-]]> 2020-03-25 07:12:50 UTC https://padlet.com/idavydova/Bookmarks/wish/473950673 3. Horizontal and vertical integration is very important for TNCs. idavydova https://padlet.com/idavydova/Bookmarks/wish/473960146 Horizontal integration -  arises at the merger of firms producing similar or homogeneous products with a view to their subsequent implementation

Vertical integration involves the merging of firms operating in different production cycles
3 forms of vertical integration:
  - downstream integration (for example, the joining of a manufacturing or semi-finished plant or raw material to a company that runs the main production);
- Upstream production integration (in particular, the acquisition of a steel-foundry company for a metalworking plant);
- Upstream production integration, which includes distributiontion cycles


]]> 2020-03-25 07:23:25 UTC https://padlet.com/idavydova/Bookmarks/wish/473960146 4.Internationalization ^nternationalization is characterized as the process of a firm's growing involvement in international operations idavydova https://padlet.com/idavydova/Bookmarks/wish/473961496 internationalization additionally covers transactions that are outside the realm of vertical or horizontal integration, such as the acquisition of capital, labor and technology.]]> 2020-03-25 07:24:47 UTC https://padlet.com/idavydova/Bookmarks/wish/473961496 5.Eclectic theory of international production (OLI theory), (theory of Danning) idavydova https://padlet.com/idavydova/Bookmarks/wish/473963381 FDI should occur on the basis of three groups of factors:
a) ownership advantages (O ): competitive advantages of the firm, incl. technological level, management skills, marketing experience, image, economies of scale, etc .;
b) location advantages; (L) include production costs in a foreign country, tariffs, taxes, transportation costs, political risk, infrastructure development, etc .;
c) internalization advantages (I) associated with the possibility of obtaining higher results through independent activity in a foreign country compared to the use of local distributors, licensees]]> 2020-03-25 07:27:05 UTC https://padlet.com/idavydova/Bookmarks/wish/473963381 6. OLI model graphically idavydova https://padlet.com/idavydova/Bookmarks/wish/473967083 2020-03-25 07:31:12 UTC https://padlet.com/idavydova/Bookmarks/wish/473967083 7.There are 3 main steps of internationalization: 1) initial; 2) local market expansion; 3) transnational. idavydova https://padlet.com/idavydova/Bookmarks/wish/473968872 2020-03-25 07:33:01 UTC https://padlet.com/idavydova/Bookmarks/wish/473968872 Homework! idavydova https://padlet.com/idavydova/Bookmarks/wish/473976955 2020-03-25 07:41:16 UTC https://padlet.com/idavydova/Bookmarks/wish/473976955 Attention! idavydova https://padlet.com/idavydova/Bookmarks/wish/486463770 Be prepared for testing control on Topics 1-3 on next week!!!!]]> 2020-04-01 12:08:53 UTC https://padlet.com/idavydova/Bookmarks/wish/486463770 Do you have some questions? Don't hesitate to ask! Will discuss together!! idavydova https://padlet.com/idavydova/Bookmarks/wish/549488258 2020-05-04 14:36:20 UTC https://padlet.com/idavydova/Bookmarks/wish/549488258