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OlgaM077 [116]
3 years ago
12

The _____ states that combining location-specific assets or resource endowments and the firm's own unique assets often requires

FDI and it also requires the firm to establish production facilities where those foreign assets or resource endowments are located.
Business
1 answer:
OleMash [197]3 years ago
7 0

Answer:

Eclectic paradigm

Explanation:

The eclectic paradigm of international production or OLI (ownership, location and internationalization) model is used by companies that are evaluating whether to engage in foreign direct investment (or internalization) or not.

It was developed in the 1970s and it is based on the premise that if it is cheaper for a company to produce internally, it will not seek to to produce in foreign countries. This analysis is based on three key factors:

  • ownership advantages: are the ownership rights of the company upheld in foreign countries
  • location advantages: does the company benefit form doing business in another specific country
  • internationalization advantages: is it better for the company to produce internationally than domestically

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3 years ago
Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. Wha
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2 years ago
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $
sergij07 [2.7K]

Answer:

$27.14

Explanation:

Calculation for the price of the firm's perpetual preferred stock

Using this formula

Price of the firm perpetual preferred stock = Annual dividend / Required return

Where,

Annual dividend =$1.90

Required return=7% or 0.07

Let plug in the formula

Price of the firm perpetual preferred stock = $1.90 / 0.07

Price of the firm perpetual preferred stock=$27.14

Therefore the Price of the firm perpetual preferred stock will be $27.14

4 0
3 years ago
If the price of the item is $15.00 per unit and the employees cost $125 each, how many employees should the firm hire to maximiz
Aneli [31]

If the price of the item is $15.00 per unit and the employees costs $125 each,  Three employees should the firm hire to maximize their profit.

How do firms maximize profit?

All firms maximize profits when their marginal cost is equal to the marginal product. This dollar amount should also be the selling price that maximizes profits.

What is meant by profit maximization?

Profit maximization is a process business firms undergo to ensure the best output and price levels are achieved in order to maximize its returns. Influential factors such as sale price, production cost and output levels are adjusted by the firm as a way of realizing its profit goals.

What are the goals of profit maximization?

Profit maximization is the process by which a business arranges its prices and cost structure to achieve the highest possible profit. The central goal of the organization is to increase its profits

 

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3 0
1 year ago
During the second quarter of the year, Wallace Enterprises received $30,000 from customers in exchange for providing electronic
SSSSS [86.1K]

Answer:

On an income statement, the company would declare c. $21,000 expenses

Explanation:

Wallace Enterprises received $30,000 from customers in exchange for providing electronic components. Income from the exchange was $30,000

During the second quarter of the year, total expense = supplies expense + interest expenses + wages expense = $5,000 + $1,000 + $15,000 = $21,000

Income from the exchange - total expense = $30,000 - $21,000 = $9,000>0

The company recognizes gain $9,000.

On an income statement, the company would declare $21,000 expenses

5 0
3 years ago
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