Week 2 (Multinational Enterprises) Flashcards
1
Q
Why do firms become MNEs
A
Profit motive, but more specifically Exploitation & Augmentation
2
Q
What are pros of MNEs
A
Employ a range of people, Shared wealth across countries
3
Q
What are negatives of MNEs
A
- Concerns about ethics
- Health & environment effect
- undue power
- corporate social irresponsibility
- crowds out local firms
4
Q
What is the Uppsala model
A
The process by which a company enters a foreign market
5
Q
What are Non-equity entry modes
A
Exports - DIrect or indirect via a distributor
Contractual Agreements - Licensing, Franchising, Turnkey projects, R & D contracts, Co-marketing, electronic/virtual
6
Q
What are equity entry modes
A
Shared ownership or full ownership
