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He made a licensing deal with that company to produce
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bardferdinand








Registrato: 27/06/19 04:20
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MessaggioInviato: Gio Giu 27, 2019 5:08 am    Oggetto:  He made a licensing deal with that company to produce
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Any method
that requires a immediate investment in foreign operations is called a foreign direct expenditure. International trade and licensing is not considered to be FDI because it doesn`t demand direct investment in dangerous operations. Franchising and joint undertakings involve some investment but to some limited degree.

Acquisitions and new subsidiaries
require large investment therefore represent a huge proportion of FDI. Many International Companies use with the multitude of methods to increase global business. For example the evolution of Nike began in 1962 2 business student at Stanford`s business school, wrote a document on how a U. S. firm could use Japan technology to break the German dominance from the athletic shoe industry in the usa.

After graduation, he visited
the Unitsuka Tiger boot company in Japan. He made a licensing deal with that company to produce a shoe that he sold in the usa under name Blue Ribbon Sports (BRS). In 1972, he or she exported his shoes for you to Canada. In 1974, he or she expanded his operations straight into Australia. In 1977, the company licensed factories in Korea and Taiwan to produce athletic shoes and then sold them in Asia.

In 1978, BRS started to be Nike, Inc.,and began to export
to Europe and South America. As a consequence of its exporting in addition to its direct foreign investment, Nike's international sales reached $1billion by 1997 plus more than $7 billion by simply 2010.

A decision of the reason companies undertake FDI as compared to other modes of entry may be explained by OLI paradigm. The paradigm tries for you to explain why companies choose FDI as compared to other modes of entry
such as licensing, combined ventures, franchising.
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MessaggioInviato: Gio Giu 27, 2019 5:08 am    Oggetto: Adv






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