Companies should keep away from doing business in international locations the place unstable forms of authorities exist because it may bring unfair advantages in opposition to home business and/or hurt the social fabric of the residents. The first section of Hymer’s work was his dissertation in 1960 known as the International Operations of National Firms.
In this thesis, the author departs from neoclassical concept and opens up a brand new area of international manufacturing. At first, Hymer began analyzing neoclassical concept and financial funding, the place the principle purpose for capital motion is the distinction in rates of interest. After this evaluation, Hymer analyzed the characteristics of international investment by massive firms for manufacturing and direct business purposes, calling this Foreign Direct Investment (FDI). By analyzing the 2 types of investments, Hymer distinguished monetary funding from direct investment. Portfolio investment is a extra passive strategy, and the primary purpose is … Read More