This topic contains a solution. Click here to go to the answer

Author Question: Which of the following trends supports improving economic conditions in Africa? A) direct ... (Read 35 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
Which of the following trends supports improving economic conditions in Africa?
 
  A) direct investment from abroad
  B) the growing importance of the public sector in Africa
  C) the gradual liquidation of the mining industry
  D) the rising cultural affinity toward goods manufactured in the West

Question 2

In a short essay, discuss the internalization theory. Provide examples.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meganlapinski

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

A

Answer to Question 2

Internalization theory explains the process by which firms acquire and retain one or more value-chain activities inside the firm. Internalizing value-chain activities (instead of outsourcing them to external suppliers) reduces the disadvantages of dealing with outside partners for performing arms-length activities such as exporting and licensing. Internalization also gives the firm greater control over its foreign operations.
For example, the MNE might internalize manufacturing by acquiring or establishing its own plant in the foreign market. This enables the firm to produce needed inputs itself rather than sourcing from independent suppliers. Alternatively, it might internalize the marketing function by establishing its own distribution subsidiary abroad, instead of contracting with an independent foreign distributor to handle its marketing in the foreign market. The firm replaces business activities performed by independent suppliers in external markets with business activities it performs itself.
Procter & Gamble initially considered exporting when it entered Japan. With exporting, P&G would have had to contract with an independent Japanese distributor to handle warehousing and marketing of its soap, diapers, and other products. Instead, P&G chose to enter Japan via FDI for three reasons: 1. trade barriers imposed by the Japanese government, 2. the strong market power of local Japanese firms, and 3. the risk of losing control over its proprietary knowledge. It established its own marketing subsidiary and national headquarters in Tokyo.




tuffie

  • Member
  • Posts: 534
Reply 2 on: Jul 7, 2018
Excellent


bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

For a complete list of videos, visit our video library