In particular, Chen and Mujtaba (2007) argue that putting the emphasis solely on transaction costs minimization is insufficient to explain an optimal market entry choice since there are other factors that play a vital role in foreign investment decisions and firm performance such as the institutional and cultural environment in the host country. Additionally, Andersen et al. (2014) state that the transaction cost framework is only able to explain decisions between dichotomous entry modes such as
are able to do transactions directly without involving any intermediaries. Bitcoin is expected to have its own advantages and disadvantages. Among the advantages are bitcoin transactions does not require a third-party involvement (Pagliery, 2014). This means that no intermediaries like banks are required to deal with bitcoin transactions. Bitcoin users need not to spend time on doing any form of transactions. For example, people have to wait for some time to do any form of transactions at the bank but
Outsourcing is the process of transferring certain parts of work to outside suppliers rather than completing it internally. This system or practice has been used by different companies specially to reduce the cost of production. “Outsourcing can also be defined as an arrangement in which one company provides services for another company” (Whatls definition, 2007). Newman and Ross (2015) further note that the trend of outsourcing has become more familiar in the field of information and technology
been influenced by the resource based view theory for the last 20 years. This theory suggests that the specific type of diversification strategy depends on the resources and capabilities of the firm. The resource based view (RBV) provides an internal perspective that stresses the motivation firms have to maximize their provisioning of resource and capabilities for diversifying into related businesses (Wan et al, 2011). Generally, the resource based theory observes the firm from the resources point
Coca-Cola. This essay takes a look at why an enterprise would seek to move outside its home country. Examining how Dunning’s eclectic, the motivations to internalize transactions and the evolutionary theory can help us understand why multinational corporations have evolved. This essay also includes an examination of how these theories can be applied in practice, using the Coca-Cola company as an example. Introduction McDonalds has over 36000 locations in 100+ countries (McDonalds 2014). H&M, more
MODIGLIANI AND MILLERS THEORIES AND ITS WEAKNESS Arnold (2013) stated that financial economists Modigliani and Millers created a simplified model for capital structure decision by making some assumptions in 1958 (pp.830). The assumptions are that there is no taxation, perfect capital markets with perfect information available to all economic agents and no transaction costs, no costs of financial distress and liquidation, firms can be classified into distinct risk classes and individuals can borrow
2005). Further to TAM theory, transaction convenience which involves advance technology in delivery security of payment during transaction, delivery of quality products, time taken for delivering the product and variety payment options (Xia et al., 2008) has been selected as one of the factor
to be reoriented by using the National Performance Review (NPR). The NPR was a review launched by Vice President Al Gore and his staff to reform and streamline the way the federal government works. They wanted to make a government that works better, cost less and get results that citizens care about. Every major government reform in the world was complete under the impression that ideas drive action. The NPR focused on two major items. First, the re-inventors desired to transfer the power to executive
2.3.1 Components of Dunning’ OLI Essentially, the eclectic paradigm is considered as a relatively simple and comprehensive theory. It states that the foreign production undertaken by MNEs is realized by the combination of three variables: ownership, location and internalization advantages. First, the ownership advantage includes some proprietary rights or intangible asset, advantageous common governance and other institutional assets (Dunning and Lundan, 2008). Ownership advantage includes aspects
lose their capital upon company wounding up. Dividend Policy Theories and Market Value