结构推理
What are the relative advantages and disadvantages of foreign direct investment, acquisitions/mergers, and joint ventures?
【正确答案】The resource commitments of FDI and foreign acquisition are generally higher than joint ventures.
a. FDI allows the MNC relatively permanent access to foreign product and factor markets. The cost of a new investment in an unfamiliar business culture can be high.
b. Acquisitions of stock or of assets may be difficult or impossible in countries with investment restrictions or ownership structures (such as the German banking system or the Japanese keiretsu industrial structure) that impede foreign acquisitions. Acquisition premiums can also be prohibitive.
c. Joint ventures can allow the MNC to gain quick access to foreign markets and to new production technologies. It can also come with risks, such as the risk of losing control of the MNC’s intellectual property rights to the joint venture partner.