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Does FDI depend on international advantages

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Issue:

Social Issues

 

Written by:

Fonda F

 

Date added:

August 7, 2014

 

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Grade:

A

 

No of pages / words:

5 / 1137

 

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Dunning (1993: p85) states that "one would normally expect a firm's size and its propensity to internalise intermediate product markets to be closely correlated". Apfelthaler (2000: p93) points out that SMEs differ to large firms and corporations not only in terms of size but also in character. He argues that their decision-making does not necessarily comprise economic reasoning but may be profoundly affected by individual preferences...
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He argues that their decision-making does not necessarily comprise economic reasoning but may be profoundly affected by individual preferences. An example would be a company for which the prestige of being represented in a certain country per se would be a driver to engage in FDI. Apfelthaler's analysis refers to Red Bull, which in its first years was a prime Austrian SME (it is not a small to medium sized company anymore)...
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