IBUS1101 Lecture Notes - Lecture 10: Horizontal Integration, United Technologies, Ikea
27 Jul 2018
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Lecture 10 - foreign direct investment and collaborative ventures. Foreign direct investment (fdi) strategy in which the firm establishes a physical presence abroad by acquiring (including by mergers and acquisitions) productive assets such as capital, technology, labour, land, plant and equipment (not passive portfolio investment) International collaborative venture cross border business alliance in which partnering firms pool resources and share costs/risks of a venture. Joint venture form of collaboration between 2+ firms to create a jointly-owned enterprise. Volkswagen = 1 billion for factory in poland to manufacture delivery vans. Lego group (denmark) = 100 million euros to build toy factory in china. Toshiba (japan) = jv with us firm united technologies for r&d centres in. Europe/india support joint innovation in heating/air con industry. Firms that offer services hotels, construction, personal care (offered when/where they are consumed) Establish permanent presence either permanently (fdi e. g. retailing) or temporary relocation of personnel (e. g. construction industry)
