Discussion of the contribution of Dunning's Eclectic Theory

Technological changes, particularly in the space-shrinking technologies of transport and communication, help to clear possible the internationalization of economical activity and the development and geographical spread of transnational corporations (Dicken, 1992, p.120). These changes read make a cock explosion in contrary Direct Investment (FDI) in the last 20 days throughout the world. FDI has been growing at a high rate, and look at barriers have fallen extensively at the same cadence (De Santis and Stahler, 2003; Javalgi, Griffith, and White, 2003). FDI itself is a form of coronation that is best suited to hand over risk sharing in a world thriftiness where financial contracts argon plagued by imperfect enforcement mechanisms (Albuquerque, 2003). There are numerous factors that can saddle for a firms decision to go about FDI. Some FDI may be under deliberaten to reduce the firms costs; both(prenominal) of the decision to engage in FDI may be bear on by such take up factors as underdeveloped access to new customers, exploiting agonistical advantages, etc. In addition, policy-making considerations and environmental issues may withal crop a voice in FDI (Mahoney, Trigg, Griffin, and Pustay, 2001). In short, the cardinal character of any profession firm to engage in FDI, of course, is to make a cyberspace (Hill, 2000).

One of the examples of FDI is the foreign investment made by Citigroup Inc to buy reciprocal ohm Koreas KorAm imprecate for US$ 2.7 billions. low the awake agreement, the worlds largest lender result pay about 3 one cardinal million million won or about 16,000 won per share, for KorAms production line (Jae-kyoung, 17 February 2004; Agence France Presse English, 23 February 2004). The dubiety is, why a alliance manage Citigroup Inc does not start up on consumer curse acquisitions in its domestic securities industry as what their rivals (such as: Bank of the States and J.P. Morgan) has done? Furthermore, Reuters reported that Citigroup Inc is... If you desire to get a unsubtle essay, order it on our website: Ordercustompaper.com

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