COMMERCE 4SA3 Chapter Notes - Chapter 7: Multinational Corporation, Starbucks, Capital Formation
17 Jan 2019
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Starbucks established a joint venture in japan with a company called sazaby inc to ensure their starbucks format is followed closely. To make sure of that starbucks employees were transferred to japan. They bought out other chains in countries and introduced starbucks everywhere. By 2002 expanded into thailand and europe. According to us department of commerce, fdi occurs wherever a us citizen, organization, or affiliated group takes an interest of 10% or more in a foreign business entity. Once fdi happens it becomes multinational enterprise. Starbucks is an example of second fdi type. Acquisition can be minority (10%-49%) majority (50%-99%) or full outright stake (100%) Past 30 years have seen a marked increase in both flow and stock of fdi in world economy. Favoured for wealthy population, political stability, openness to fdi. Most recent inflows into developing nations have been targeted at the emerging economics of south east, and.
