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A Company often reaches a flash where growth limited
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amandaphilip








Registrato: 10/06/19 04:48
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MessaggioInviato: Lun Giu 10, 2019 8:39 am    Oggetto:  A Company often reaches a flash where growth limited
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Companies consider Foreign Direct Investment (FDI) because
it can improve their profitability and strengthen shareholders money. Mainly they have two motives to undertake FDI. Sales related and cost similar motives. One of revenue related motives would be to attract new sources of demand.

A Company often reaches a minutes where growth limited inside a local market so the item searches for new sources of demand in currency countries. Some MNCs perceived developing countries such as Chile, Mexico, China, and Hungary
such as an attractive cause of demand and gained sizeable market share.

Other revenue related motive could be to enter profitable markets. If
other companies in this industry have proved that superior earnings is usually realized in certain economies, a National Company may also decide to sell throughout those markets.

Some Companies exploit monopolistic advantage. In case your National Company possesses superior technology and has taken a benefit of it in home market, the company can try and exploit it internationally too. In fact, the company may
have a more different advantage in markets that contain less advanced technology.

In addition to the revenue motives companies engage in
in an effort get rid of costs. One of typical ulterior motives of Companies that want to cut costs is to make use of foreign factors of generation. Some Companies often attempt to begin production facilities in destinations where land and crews costs are cheap.
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MessaggioInviato: Lun Giu 10, 2019 8:39 am    Oggetto: Adv






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