Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
Pearson eText International Business: The Challenges of Globalization -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879879
Author: John Wild, Kenneth Wild
Publisher: PEARSON+
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Chapter 7, Problem 3TAI2
Summary Introduction

To Determine:

Which FDI theory has been opted by the company in relation to its decision needs to be identified.

Introduction:

The Global automaker company, which you work for, has decided to build a Greenfield automobile assembly facility in Costa Rica with a local partner in that country.

Suggestion:

The company has used eclectic theory to decide on Greenfield investment in Costa Rica as there strategic entry point.

Given information:

The following are the data given:

  1. Theory of Monopolistic Advantage
  2. Oligopoly Theory of Advantage
  3. Product Life Cycle Model
  4. Eclectic theory

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