--%>
Assignment Help - homework help

Internalization theory of FDI

Explain internalization theory of the FDI. Specify the strength and weakness of this theory?

E

Expert

Verified

As per theory of the internalization, firms which have intangible assets with the public good property undertake the FDI to take the benefit of assets on the large scale and, simultaneously, avoid the misappropriation of returns from assets which may happen during the arm’s length transactions in the foreign countries. Theory may be effective in explaining the green field investments, however not in elucidating the mergers and acquisitions.

   Related Questions in Financial Accounting

  • Q : Matlab Applications in Image and Video

    Image and video processing is most difficult topic in electrical and electronics field. This topic becomes trickier if you are taking use of Matlab in this. Student faces a lot of problem in image and video processing theories. If you are messed up with same difficulties

    		•
  • Q : Re-measurement and translation

    Explain the re-measurement and translation procedure in FASB 52 of translating to the reporting currency the books of the entirely owned affiliate which maintains its books in local currency of country in which it operates, that is different from its functional curren

    		•
  • Q : Investment approach of Lynch Investment

    Investment approach of Lynch: Peter Lynch, the best known mutual fund manager, also adopts the words of Benjamin Graham in the sense that he looks at companies not from the perspective of how the stock prices move

    		•
  • Q : Goals of Social Democrats What were the

    What were the goals of Social Democrats? What did Anarchists want?

    		•
  • Q : DM/S$ currency versus currency bid-ask

    Provided the given information, state the DM/S$ currency versus the currency bid-ask quotations? Bank Quotations              American Terms        

    		•
  • Q : Define Revenue Revenue : The amount

    Revenue: The amount (sum) of money which a company really receives throughout a specific period, comprising discounts and deductions for the returned merchandise. This is the "top line" or "annual income" figure from which costs are subtracted to find

    		•
  • Q : What is correspondent bank relationship

    Explain what you mean by Correspondent bank relationship.

    		•
  • Q : Explain Return on Equity or ROE Return

    Return on Equity (ROE): The amount of net income returned as a percentage of share-holders equity. The return on equity measures a corporation's profitability by revealing how greatly profit a company produces with the money share-holders encompass in

    		•
  • Q : Challenges of friendships How is

    How is friendship differing from other relationships? Explain the challenges of friendships. What are the common expectations for friendships – give an illustration of each. Explain how friendships fluctuate ove

    		•
  • Q : Assessing risk in the workplace

    Describe the primary steps in assessing risk in the workplace with respect to Health and safety, identify and discuss what actions should be taken to manage or wipe out the risks posed?

    		•