Chapter2MNCtheories(跨国公司管理-北外,董丽丽).ppt

FDI Outflows1982-1998 Growth of FDI, World Trade and World Output What should a MNC theory tell us? Motivation Pattern Outline Capital arbitrage Monopolistic Advantage Oligopolistic reaction Internalization Theory Eclectic theory The Product Life Cycle Discussion: new development and explanation FDI vs Portfolio Investment Flow vs Stock of FDI Flow: Amount of FDI over a period of time (one year). Stock: Total accumulated value of foreign owned assets at a given point in time. Two Forms of FDI Horizontal Direct Investment in the same industry Vertical Direct Investment Backward forward 2-1 Capital arbitrage Background Profitability / Interest rate Capital-abundant—capital-scarce countries Large financial MNCs Portfolio investment and FDI—same direction deficiency 2-2 Monopolistic Advantage Stephen H.Hymer 《International Operations of National Firms: A Study of Direct Foreign Investment》 Background 2-2 Monopolistic Advantage Technological Advantage managerial skills Input Advantage Market Advantage 2-2 Monopolistic Advantage FDI vs Portfolio investment Market imperfection 2-2 Deficiency FDI launched by developing countries FDI vs export or licensing More competitive industries location 2-3 Oligopolistic reaction F.T.Knichkerbocker1970’s 2-4 Internalization Theory 1937 Coarse The Nature of the Firms Governance Opportunism Transaction-specific Investment Site specificity, physical asset specificity, human asset specificity 2-4 Internalization Theory Peter.J.Buckley Mark.C.Casson 1976 semi finished product--information non-rivalrous, non-excludable consumption Zero marginal cost information paradox unable to codify 2-4 Internalization Theory Opportunism; information product Appraisal discussion 2-5 Eclectic theory John Harry Dunning: Location Specific Advantage OSA+IA+LSA--？ OSA+IA--？ OSA--？ Appraisal Discussion 2-6 The Product Life Cycle Raymond Vernon 1966 International Investment and International Trade in the Product Cycle New Product Stag