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A Company often reaches a second where growth
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evangelinereed

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PostPosted: 14 Jun 2019 08:22:29    Post subject:  A Company often reaches a second where growth
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Corporations consider Foreign Direct Investment (FDI) because
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it can improve their profitability and strengthen shareholders riches. Mainly they have 2 motives to undertake FDI. Revenue related and cost associated motives. One of revenue related motives is always to attract new sources of demand.

A Company often reaches a moment where growth limited inside a local market so them searches for new options of demand in international countries. Some MNCs perceived developing countries including Chile, Mexico, China, and Hungary
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such as an attractive source of demand and gained significant market share.

Other revenue related motive is usually to enter profitable markets. If
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other companies in that industry have proved that superior earnings is usually realized in certain real estate markets, a National Company may decide to sell with those markets.

Some Corporations exploit monopolistic advantage. In case a National Company possesses innovative technology and has taken a lead of it in home market, the company can attempt to exploit it internationally too. In fact, the company may
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have a more different advantage in markets which have less advanced technology.

Besides revenue motives companies engage in
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in an effort to relieve costs. One of typical ulterior motives of Companies that want to cut costs is to work with foreign factors of generation. Some Companies often attempt to create production facilities in destinations where land and job costs are cheap.
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PostPosted: 14 Jun 2019 08:22:29    Post subject: Adv





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