Foreign Direct Investment (Theories of FDI)Mamta Bhola
the opening up of the national frontiers has led to a tremendous cross border movement of capital. This has led to a large number of MNC's that have invested foreign capital in a number of countries. MNC's through FDI have expanded their business operations to a large extent.
International Business (BBA MBA) advantages & disadvantages of international busine, approaches of international business, entry strategy, imf, international business (bba mba) entry policy, international organization, nature & scope & feature of international business, need for international business, reasons for recent growth in international busines, what is international business ?university of solapur
Foreign Direct Investment (Theories of FDI)Mamta Bhola
the opening up of the national frontiers has led to a tremendous cross border movement of capital. This has led to a large number of MNC's that have invested foreign capital in a number of countries. MNC's through FDI have expanded their business operations to a large extent.
International Business (BBA MBA) advantages & disadvantages of international busine, approaches of international business, entry strategy, imf, international business (bba mba) entry policy, international organization, nature & scope & feature of international business, need for international business, reasons for recent growth in international busines, what is international business ?university of solapur
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.also known as cross border investment.
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.also known as cross border investment.
Factor Endowments12,13LO7.2The sources of national advantage; .docxssuser454af01
Factor Endowments12,13
LO7.2
The sources of national advantage; that is, why an industry in a given country is more (or less) successful than the same industry in another country.
Classical economics suggests that factors of production such as land, labor, and capital are the building blocks that create usable consumer goods and services. 14 However, companies in advanced nations seeking competitive advantage over firms in other nations create many of the factors of production. For example, a country or industry dependent on scientific innovation must have a skilled human resource pool to draw upon. This resource pool is not inherited; it is created through investment in industry-specific knowledge and talent. The supporting infrastructure of a country—that is, its transportation and communication systems as well as its banking system—are also critical.
Factors of production must be developed that are industry and firm specific. In addition, the pool of resources is less important than the speed and efficiency with which these resources are deployed. Thus, firm-specific knowledge and skills created within a country that are rare, valuable, difficult to imitate, and rapidly and efficiently deployed are the factors of production that ultimately lead to a nation’s competitive advantage.
For example, the island nation of Japan has little land mass, making the warehouse space needed to store inventory prohibitively expensive. But by pioneering just-in-time inventory management, Japanese companies managed to create a resource from which they gained advantage over companies in other nations that spent large sums to warehouse inventory.
Demand Conditions
Demand conditions refer to the demands that consumers place on an industry for goods and services. Consumers who demand highly specific, sophisticated products and services force firms to create innovative, advanced products and services to meet the demand. This consumer pressure presents challenges to a country’s industries. But in response to these challenges, improvements to existing goods and services often result, creating conditions necessary for competitive advantage over firms in other countries.
Countries with demanding consumers drive firms in that country to meet high standards, upgrade existing products and services, and create innovative products and services. The conditions of consumer demand influence how firms view a market. This, in turn, helps a nation’s industries to better anticipate future global demand conditions and proactively respond to product and service requirements.
Denmark, for instance, is known for its environmental awareness. Demand from consumers for environmentally safe products has spurred Danish manufacturers to become leaders in water pollution control equipment—products it successfully exported.
Related and Supporting Industries
related and supporting industries (national advantage)
the presence, absence, and quality in the nation of supplier industries and othe ...
Introduction,Why MNCs are exist in International Business? , Alternative Methods of Foreign Investment by MNCs, There are three main modes of foreign investment, Role of Multinational Corporations in the Indian Economy, Disadvantages of Multinational Corporations,
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
2. 1. TheTheory of Comparative Advantage
2. Market Imperfections
3. Sustaining andTransferring Competitive Advantage
4. OLI Paradigm
Dr Raju Indukoori 2
3. • Propounded by David Ricardo in 1817.
• It provides a basis for explaining and justifying
international trade in a model world assumed to
enjoy free trade, perfect competition, no uncertainty,
costless information, and no government
interference.
Dr Raju Indukoori 3
4. It has only 2 products for trade.
Exporters in Country A sell goods or services to unrelated
importers in Country B.
Firms in Country A specialize in making products that can be
produced relatively efficiently, given Country A’s endowment of
factors of production, that is, land, labor, capital, and technology.
Firms in Country B do likewise, given the factors of production
found in Country B.
In this way the total combined output of A and B is maximized.
Dr Raju Indukoori 4
5. Benefits of specialization are realized through international
trade as factors of production cannot move between A&B
Benefits depends on
terms of trade
ratio at which quantities of the physical goods are traded.
In perfectly competitive markets, each country’s share is
determined by
Supply
Demand
Neither Country A nor Country B is worse off than before
trade, and typically both are better off.
Dr Raju Indukoori 5
6. It still a relevant for exports of goods and services supporting
global supply chain of both MNCs and domestic firms.
Now the trade is one based more on services, and their cross-
border facilitation by telecommunications and the Internet.
The source of a nations comparative advantage is still created
from the mixture of its own labor skills, access to capital, and
technology.
It takes a relative advantage in costs, not just an absolute
advantage, to create comparative advantage.
Clearly, the extent of global outsourcing is reaching out to
every corner of the globe.
Dr Raju Indukoori 6
7. Dr Raju Indukoori
CHINA
PHILIPPINES
MEXICO
COSTA RICA S. AFRICA
INDIA
RUSSIA
EAST. EUROPE
UNITED
STATES
LONDON
PARIS
BERLIN
BUDAPEST
BOMBAY
HYDERABAD
BANGALORE
JOHANNESBURG
SAN JOSE
GUADALAJARA
MANILA
MOSCOW
MONTERREY
SHANGHAI
Data: Gartner, McKinsey, BW
Global Supply Chain Outsourcing of Comparative Advantage
MNEs based in many of the major industrial countries are outsourcing many of their
intellectual functions to providers based in many of the traditional emerging market countries.
7
8. Popular in 19th century, cannot be applied now. Because
countries do not appear to specialize only in those products
that could be most efficiently produced by that country’s
particular factors of production due to government
interference and ulterior motivations.
capital and technology flow directly and easily between
countries.
numerous modern factors of production more numerous
than in this simple model.
Dr Raju Indukoori 8
9. Although the terms of trade are ultimately determined by supply
and demand, the process by which the terms are set is different
from that visualized in traditional trade theory.
Comparative advantage shifts over time, as less developed
countries become developed and realize their latent
opportunities.
The classical model of comparative advantage did not really
address certain other issues, such as the effect of uncertainty and
information costs, the role of differentiated products in
imperfectly competitive markets, and economies of scale.
Dr Raju Indukoori 9
10. A Rationale for the Existence of the Multinationals.
MNEs strive to take advantage of imperfections in
national markets for products, factors of production,
and financial assets.
Imperfections in the market for products translate into
market opportunities for MNEs.
Large international firms are better able to exploit such
competitive factors as economies of scale, managerial
and technological expertise, product differentiation,
and financial strength than are their local competitors.
Dr Raju Indukoori 10
2. Market Imperfections
11. Strategic Motives : Drive the decision to invest abroad and
become an MNC. Independent and Mutually exclusive
strategies are as follows.
1. Market seekers
2. Raw material seekers
3. Production efficiency seekers
4. Knowledge seekers
5. Political safety seekers
Dr Raju Indukoori 11
12. To compensate the firm for the potential disadvantages of
operating abroad, competitive advantage must be
firm-specific
transferable
powerful enough
Dr Raju Indukoori 12
13. FocusAreas
A. Economies of scale and scope
B. Managerial and marketing expertise
C. Advanced technology
D. Financial strength
E. Differentiated Products
F. Competitiveness in the domestic market
Dr Raju Indukoori 13
14. A. Economies of scale and scope
Can be developed in production, marketing, finance,
research and development, transportation, and purchasing
Large size is a major contributing factor (due to international
and/or domestic operations)
Dr Raju Indukoori 14
15. B. Managerial and marketing expertise
Includes skill in managing large industrial organizations
(human capital and technology)
Also encompasses knowledge of modern analytical
techniques and their application in functional areas of
business
Dr Raju Indukoori 15
17. D. Financial strength
Demonstrated financial strength by achieving and
maintaining a global cost and availability of capital
This is a critical competitive cost variable that
enables them to fund FDI and other foreign
activities
Dr Raju Indukoori 17
18. E. Differentiated products
Firms create their own firm-specific advantages by
producing and marketing differentiated products
Such products originate from research-based
innovations or heavy marketing expenditures to
gain brand identification
Dr Raju Indukoori 18
19. F. Competitiveness of the home market
A strongly competitive home market can sharpen a
firm’s competitive advantage relative to firms
located in less competitive ones
This phenomenon is known as the diamond of
national advantage and has four components
Dr Raju Indukoori 19
20. Porter’s Diamond: Competitive advantage determinants
1. Factor Conditions
2. Demand Conditions
3. Related and Supporting Industries
4. Firm’s Strategy, Structure and Rivalry
Dr Raju Indukoori 20
22. Potential disadvantages of MNC operating abroad
Foreign exchange risks
Political risks
Increased agency costs
Dr Raju Indukoori 22
23. It explains why MNCs choose FDI alternative models.
O (Owner-specific)
competitive advantage in the home market that can be transferred
abroad
L (location-specific)
Specific characteristics of the foreign market allow the firm to exploit
its competitive advantage)
I (Internalization)
Maintenance of its competitive position by attempting to control
the entire value chain in its industry
Dr Raju Indukoori 23
24. Dr Raju Indukoori
Watch more on myYoutube Channel
https://www.youtube.com/channel/UCCM94XnsOoGDl0PnsaVfeNA
25. Dr Raju Indukoori
Watch more on myYoutube Channel
https://www.youtube.com/channel/UCCM94XnsOoGDl0PnsaVfeNA