International business research is only beginning to develop theory and evidence highlighting the importance of supranational regional institutions to explain firm internationalization. In this context, we offer new theory and evidence regarding the effect of a region's "institutional complexity" on foreign direct investment decisions by multinational enterprises (MNEs). We define a region's institutional complexity using two components, regional institutional diversity and number of countries. We explore the unique relationships of both components with MNEs' decisions to internationalize into countries within the region. Drawing on semiglobalization and regionalization research and institutional theory, we posit an inverted U-shaped relationship between a region's institutional diversity and MNE internationalization: extremely low or high regional institutional diversity has negative effects on internationalization, but moderate diversity has a positive effect on internationalization. Larger numbers of countries within the region reduces MNE internationalization in a linear fashion. We find support for these predicted relationships in multilevel analyses of 698 Japanese MNEs operating in 49 countries within 9 regions. Regional institutional complexity is both a challenge and an opportunity for MNEs seeking advantages through the aggregation and arbitrage of individual country factors.
During strikes, Worker do not get paid and can't earn money, causing them having a hard time to afford a living until strike is over.
Companies will have bad business
Answer:
$5,000
Explanation:
A perpetuity pays $250 every year
The appropriate interest rate is 5%
= 5/100
= 0.05
Therefore the present value of the perpetuity can be calculated as follows
= 250/0.05
= $5,000
Hence the present value of the perpetuity is $5,000
Answer:
Forecasting
Explanation:
Forecasting is the way by which businesses predict future economic conditions by using past information and present economic situation to make informed guess about the future.
Forecasting is used by businesses to develop strategies that will ensure their future profitability.
In this instance Exxon predicted demand for oil, gas, and coal will increase for the foreseeable future of 20 to 30 years.
However their present activity is investment I sample biofuel projects.
This is forecasting the trend of demand in the oil and gas industry.
Answer:
Where C is a constant, now using the initial condition we got:
And solving for C we got:
And the function desired for the advertising revenue would be given by:
With f the amount in billions and the the years since 2002 to 2006.
Explanation:
For this case we have the following function who represent the revenue grew rate:
And we want to calculate the Advertising revenue so we need to integrate the function r(t) and we can use the inidital condition t=0 , f(2)= 5.9 billion.
If we integrate the function we got:
Where C is a constant, now using the initial condition we got:
And solving for C we got:
And the function desired for the advertising revenue would be given by:
With f the amount in billions and the the years since 2002 to 2006.
