By Dula, Lay, O'Connell, Sumpter, Szachnowski
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Additional resources for Before the Fall: Innsmouth Adventures Prior to the Great Raid of 1928
Additional investments are required to cover operational and organizational costs of managing foreign subsidiaries from a distance and higher marketing and business development expenses due to language and cultural barriers, and the possibility of discrimination. Therefore, the investing ﬁrm must have a speciﬁc, in fact a monopolistic advantage, which is derived from market imperfections. C. P. Kindleberger (1969) 16 expanded Hymer’s concept by deﬁning, on the basis of market imperfections, four key factors that underline the success of TNCs wherever they operate, with or without government intervention, and which may alter cost and beneﬁt structures: • Product-induced imperfections: marketing techniques, brand image, product differentiation.
Their selection should be based on careful analysis of targeted companies and their key factors of success (leadership skills, ﬁnancial accounts, global behaviour, size and so on), and the sectoral structure in the home countries. 24 The oligopoly paradigm is based on empirical research conducted in oligopolistic structures; it therefore neglects the role of medium-sized TNCs in modernizing industries in transition countries. g. 5 Internalization theory The internalization concept establishes a link between FDI by large corporations and their internal organization reﬂected by the hierarchic integration of business functions.
G. those of Adam Smith, David Ricardo) regarded international trade as a motor of economic internationalization and integration. Internationalization through trade was considered an essential catalyst for generating domestic wealth, especially when a country sought specialization in those economic activities where it had comparative advantages. Private companies had become the principal economic agents of the capitalist system in place, and leading scholars in countries with open economies like England favoured deregulation and liberalization in all possible spheres of economic life so that trade relations could be expanded with other countries.
Before the Fall: Innsmouth Adventures Prior to the Great Raid of 1928 by Dula, Lay, O'Connell, Sumpter, Szachnowski