Professional Documents
Culture Documents
AND
INTERNATIONAL
BUSINESS
By Aziz Ahmed Chaudhry
TRIAD
O The three major trading and
INTRODUCTION
O Over the last decade international
INTRODUCTION
O A growing number of other countries
INTRODUCTION
O Yet despite the increase of
outside Switzerland.
REDUCE COSTS:
O An MNE can sometimes achieve
REDUCE COSTS:
O A second important cost factor is materials.
REDUCE COSTS:
O A fourth important factor is
REDUCE COSTS:
O Mexican firms, armed with the latest
GAIN A FOOTHOLD IN
ECONOMIC BLOCS
O There are three major international
economics blocs.
O MNEs that acquire a company in one of these
blocs or that enter into an alliance to do
business in one of these economic
strongholds can obtain a number of benefits
including the right to sell their output without
having to be burdened by import duties or
other restrictions.
O The final result will be three extended triads
and any company that wants to do business
worldwide will have to have a presence in all
three blocs.
PROTECT DOMESTIC
MARKETS:
O Another reason for FDI is to protect ones
domestic market.
O Many MNEs are now entering an
international market in order to attack
potential competitors and thus prevent
them from expanding their operations
overseas.
O These multinationals reason that a
competitor is less likely to enter a foreign
market when it is busy defending its home
market position.
PROTECT DOMESTIC
MARKETS:
O Similarly, sometimes an MNE will
TRAID ECONOMIES
O The triad nations dominate the world
TRAID ECONOMIES
O One of the major area of triad trade