Apple Supplier Foxconn Employs 14YearOlds

[3] The theory of internalization itself is based on the transaction cost theory. [3] This theory says that transactions are made within an institution if the transaction costs on the free market are higher than the internal costs. This process is called internalization. [3] For Dunning, not only the structure of organization is important. 3] He added 3 more factors to the theory:[3] Ownership advantages[1] (trademark, production technique, entrepreneurial skills, returns to scale)[2] Ownership specific advantages refer to the competitive advantages of the enterprises seeking to engage in Foreign direct investment (FDI). The greater the competitive advantages of the investing firms, the more they are likely to engage in their foreign production. [4] Location advantages [5](existence of raw materials, low wages, special taxes or tariffs)[2] Locational attractions refer to the alternative countries or regions, for undertaking the value adding activities of MNEs. The more the immobile, natural or created resources, which firms need to use jointly with their own competitive advantages, favor a presence in a foreign location, the more firms will choose to augment or exploit their O specific advantages by engaging in FDI. [4] Internalization advantages (advantages by own production rather than producing through a partnership arrangement such as licensing or a joint venture)[2] Firms may organize the creation and exploitation of their core competencies. The greater the net benefits of internalizing cross-border intermediate product markets, the more likely a firm will prefer to engage in foreign production itself rather than license the right to do so. [4] Source: Dunning (1981)[6]Categories of advantages Ownership advantagesInternalization advantagesLocation advantages Form of market entry Licensing[1] YesNoNo Export YesYesNo FDI YesYesYes [edit]Theory The idea behind the Eclectic Paradigm is to merge several isolated theories of international economics in one approach. 1] Three basic forms of international activities of companies can be distinguished: Export, FDI and Licensing. [1] The so-called OLI-factors are three categories of advantages, namely the ownership advantages, locational advantages and internalization advantages. [1] A precondition for international activities of a company are the availability of net ownership advantages. These advantages can both be material and immaterial. The term net ownership advantages is used to express the advantages that a company has in foreign and unknown markets. 1] According to Dunning two different types of FDI can be distinguished. While resource seeking investments are made in order to establish access to basic material like raw materials or other input factors, market seeking investments are made to enter an existing market or establish a new market. [1] A closer distinction is made by Dunning with the terms efficiency seeking investments, strategic seeking investments and support investments. [1] Trade and FDI patterns for industries and countries. [7]Location advantages StrongWeak Ownership advantagesStrongExportsOutward FDI WeakInward FDIImports The eclectic paradigm also contrasts a country’s resource endowment and geographical position (providing locational advantages) with firms resources (ownership advantages). [7] In the model, countries can be shown to face one of the four outcomes shown in the figure above. [7] In the top, right hand box in the figure above firms possess competitive advantages, but the home domicile has higher factor and transport costs than foreign locations. [7] The firms therefore make a FDI abroad in order to capture the rents from their advantages. [7] But if the country has locational advantages, strong local firms are more likely to emphasize exporting. 7] The possibilities when the nation has only weak firms, as in most developing countries, leads to the opposite outcomes. [7] These conditions are similar to those suggested by Porter’s diamond model of national competitiveness. [7] [edit]Application in practice In dependence of the categories of advantage there can be chosen the form of the international activity. If a company has ownership advantages like having knowledge about the target market abroad, for example staff with language skills, information about import permissions, appropriate products, contacts and so on, it can do a licensing. The licensing is less cost-intensive than the other forms of internalization. If there are internalization advantages, the company can invest more capital abroad. This can be achieved by export in form of an export subsidiary. The FDI is the most capital intensive activity that a company can choose. According to Dunning, it is considered that locational advantages are necessary for FDI. This can be realized by factories which are either bought or completely constructed abroad. FDI is the most capital intensive form of internalization activity. Apple Supplier Foxconn Employs 14YearOlds [3] The theory of internalization itself is based on the transaction cost theory. [3] This theory says that transactions are made within an institution if the transaction costs on the free market are higher than the internal costs. This process is called internalization. [3] For Dunning, not only the structure of organization is important. 3] He added 3 more factors to the theory:[3] Ownership advantages[1] (trademark, production technique, entrepreneurial skills, returns to scale)[2] Ownership specific advantages refer to the competitive advantages of the enterprises seeking to engage in Foreign direct investment (FDI). The greater the competitive advantages of the investing firms, the more they are likely to engage in their foreign production. [4] Location advantages [5](existence of raw materials, low wages, special taxes or tariffs)[2] Locational attractions refer to the alternative countries or regions, for undertaking the value adding activities of MNEs. The more the immobile, natural or created resources, which firms need to use jointly with their own competitive advantages, favor a presence in a foreign location, the more firms will choose to augment or exploit their O specific advantages by engaging in FDI. [4] Internalization advantages (advantages by own production rather than producing through a partnership arrangement such as licensing or a joint venture)[2] Firms may organize the creation and exploitation of their core competencies. The greater the net benefits of internalizing cross-border intermediate product markets, the more likely a firm will prefer to engage in foreign production itself rather than license the right to do so. [4] Source: Dunning (1981)[6]Categories of advantages Ownership advantagesInternalization advantagesLocation advantages Form of market entry Licensing[1] YesNoNo Export YesYesNo FDI YesYesYes [edit]Theory The idea behind the Eclectic Paradigm is to merge several isolated theories of international economics in one approach. 1] Three basic forms of international activities of companies can be distinguished: Export, FDI and Licensing. [1] The so-called OLI-factors are three categories of advantages, namely the ownership advantages, locational advantages and internalization advantages. [1] A precondition for international activities of a company are the availability of net ownership advantages. These advantages can both be material and immaterial. The term net ownership advantages is used to express the advantages that a company has in foreign and unknown markets. 1] According to Dunning two different types of FDI can be distinguished. While resource seeking investments are made in order to establish access to basic material like raw materials or other input factors, market seeking investments are made to enter an existing market or establish a new market. [1] A closer distinction is made by Dunning with the terms efficiency seeking investments, strategic seeking investments and support investments. [1] Trade and FDI patterns for industries and countries. [7]Location advantages StrongWeak Ownership advantagesStrongExportsOutward FDI WeakInward FDIImports The eclectic paradigm also contrasts a country’s resource endowment and geographical position (providing locational advantages) with firms resources (ownership advantages). [7] In the model, countries can be shown to face one of the four outcomes shown in the figure above. [7] In the top, right hand box in the figure above firms possess competitive advantages, but the home domicile has higher factor and transport costs than foreign locations. [7] The firms therefore make a FDI abroad in order to capture the rents from their advantages. [7] But if the country has locational advantages, strong local firms are more likely to emphasize exporting. 7] The possibilities when the nation has only weak firms, as in most developing countries, leads to the opposite outcomes. [7] These conditions are similar to those suggested by Porter’s diamond model of national competitiveness. [7] [edit]Application in practice In dependence of the categories of advantage there can be chosen the form of the international activity. If a company has ownership advantages like having knowledge about the target market abroad, for example staff with language skills, information about import permissions, appropriate products, contacts and so on, it can do a licensing. The licensing is less cost-intensive than the other forms of internalization. If there are internalization advantages, the company can invest more capital abroad. This can be achieved by export in form of an export subsidiary. The FDI is the most capital intensive activity that a company can choose. According to Dunning, it is considered that locational advantages are necessary for FDI. This can be realized by factories which are either bought or completely constructed abroad. FDI is the most capital intensive form of internalization activity.

Journalism, mass media and communication Essay Example | Topics and Well Written Essays - 750 words

Journalism, mass media and communication - Essay Example Journalism, mass media and communication In my case my goals coincided with the group’s goal. But there were many who joined us for leisure, for publicity etc, undermining the combined thought of the group. Answer 2: Groups sometimes carry formal rules well stated and expressed. In my case, we decided to wear black shirts to exhibit our protest from our attire and each and every participant was bound to wear it. Although they were provided free of cost. Our demonstration needed emotionally charged expression, although not stated, but every individual portrayed this norm. However our group was leaded by some of the extraordinary individuals to be the best representative of our cause. The rules were clearly stated since the day group formation began and most rules were stated by group leaders like the gathering of all members, timings, location etc. But as the demonstrations began, all the group members of our campus were reflective of our identity. Answer 3: Although norms are suitable group standards, defining roles leads the development of expected behavior pattern of members. In my case, the selection of leaders, and then there assistants was made to define their specific roles within our group. Although the leaders were not mentioned to be the head but they reached that level as we started following them. So they acquired this position due to their innate leadership qualities and played an informal role in our group. The informal roles are categorized into two categories, social and task. Task roles lead the group to its goals while social roles help in bringing cohesiveness among group members. Answer4 One of the ways for classifying groups is their decision making criteria. In our groups mostly used decision making criteria is for running into consensus that involves bringing all members to one point. However, this is not the only method adopted, in cases where consensus is unachievable; majority control is adopted that i s a reflective of democracy. In cases where one of our members has a core competency, group does rely on that member in decision making on that subject. But, the minority control approach has not been applied in any of several groups formed during the course of study. As most of groups I belonged were due to dependency regarding intellectual sharing, therefore, at times the development of group leader diverts decision making towards authority control. Answer5 As group members perform differing roles within the group, the power inherited in these roles may lead to development of political situation within the group. It is well known that those who have any sort of power may influence the behavior of others. Some power is inherited with the position of a group member. For example those given the position of leader automatically develop the feel of being authoritarian over others. Such power is usually considered as legitimate. At times the behavior of other group members can be contro lled due to coercive power. For example, imposing fines on any noncompliance with the group’s norms and rules is a result of exercising coercive power. And if the behavior of others is influenced by providing rewards as a reinforcing technique for desirable consequences, such power results from the positive way of influencing others and usually termed as reward power. The expert power stems from being a

Information Systems in Business Coursework Example | Topics and Well Written Essays - 1250 words

Information Systems in Business - Coursework Example Other data such a s population and demographic data that is important for forecasting can be sourced from government institutions and agencies (Paul, 2001). (ii) Data warehousing for Wal- mart will enhance decision making in the company with regards to inventory management, price control and sales monitoring. The data warehouse will provide data on a real time basis that will effectively aide in quick decision making on supply chain management and customer relationship management (Paul, 2001). Data mining which involves extraction and acquisition of data from the relevant sources to be stored in the data warehouse enables the company; to have up to date and real time data from all its retail stores. This allows real time analysis of the data and facilitates decision making that is appropriate for each store based on the data available (Paul, 2001). (iii) ECM applications are basically provides formalized techniques by which an organization can store and its documents, contents records and other content that is related to business processes and transactions. It entails strategies, tools and methods that used throughout (John, 2013). Hierarchical model where data is structured in a hierarchical manner following a sort of sequence exhibiting a tree structure. There is a root that has branches emanating from it. Network data base model that exhibits a many to many relationship. Items in this model can connect to any item in the database creating a network. Most databases that are used on the Mini and Micro computers are normally based on either hierarchical or network database model. Relational database model has data organized in two dimensional tables with rows and columns populated with related data. Most of the Database software packages available on microcomputers (PCs) are of relational model (Graham & David, 2008). Other database structure models used include the multimedia database that