GMS 724 Lecture Notes - Lecture 10: Foreign Direct Investment, Explicit Knowledge, Intangible Property

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

Moreover, the higher the transportation costs relative to production costs, the more difficult for companies to develop viable export markets. Whirlpool, for example, finds that most u. s. demand is for top-loading washing machines with large capacity using. 110 electrical voltage, but most european demand is for front-loading washing machines (more efficient in using energy and water) with smaller capacity using. Thus companies may find that they must produce in a foreign country if they are to sell there. Skoda models in india because of india"s 121 percent duty on the imports: when buyers prefer products originating from a particular country. Consumers sometimes prefer domestically produced goods because of: nationalism, a belief that these products are better, a fear that foreign-made goods may not be delivered on time. Fdi as alternative: taking control: foreign direct investment, for direct investment to take place, control must accompany the investment.