BU481- Midterm Exam Guide - Comprehensive Notes for the exam ( 20 pages long!)
Document Summary
Bu491 midterm: access to products and services that would otherwise not be available to them. Firms profit from: large # of customers and increased sales and profits, more customers lead to increases in production which results in economies of scale and lower average costs. Canadian economy profits: strong contribution to gdp. Job creation: wage premium paid by exporting firms. What differentiates an mne is that is creates an internal organization to carry out key cross border asks and transactions internally, rather than depending on trade through external markets (eg. apple, honda, mcdonalds) Motivations to internationalize: traditional motivations (pre 1970, 1. Market seeking: fill capacity, exploit competitive advantages, economies of scale and scope, 2. Resource seeking: secure key supplies, exploit factor cost differences (access low cost factors of production, 3. Industry internationalization forces: scale economies: ballooning r&d investments shortening product life cycle, 2. Global scanning and learning: access emerging trends, new technologies, best skills worldwide, 3.