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On January 1, 2016, ABC Company acquired 30% ownership interest in XYZ Corp. for P4,000,0, Summaries of Accounting

On January 1, 2016, ABC Company acquired 30% ownership interest in XYZ Corp. for P4,000,000 when the book value of the equity of XYZ amounted to P12,000,000.

Typology: Summaries

2021/2022

Uploaded on 09/17/2022

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nathalie-grace-getino 🇵🇭

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FOUNDATIONS OF
INTERNATIONAL BUSINESS
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FOUNDATIONS OF

INTERNATIONAL BUSINESS

IB ACTIONS

T r a d i n g , I n v e s ti n g , G l o b a l i s i n g Add a Footer

Comparative Advantage (^) Competitive Advantage

  • (^) More rooted in strategic management
  • (^) refers to distinctive assets or competencies of a firm
  • (^) Explains which firms , industries, or nations will be winners in global competition and how they can position themselves for it
  • (^) More rooted in economics
  • (^) superior feature of a nation or industry
  • (^) Seeks to explain patterns and gains from trade DIFFERENCES

2.)INTERNATIONAL INVESTING A foreign direct investment (FDI) -direct investment in business operations in a foreign country. -equity(ownership) stake of 10% or more in foreign - based enterprise. Outflows of FDI : Direct Investor Inflow of FDI : Direct Investment Enterprise Add a Footer

THE ECLECTIC (OLI) PARADIGM -a method for analysing the attractiveness of making a FDI Ownership Advantage : proprietary and various ownership rights Location Advantage: advantages enjoyed by a firm that derive from the places in which it operates. Internalisation Advantage: advantages enjoyed by a firm that keeps activities internal

INTERNATIONAL BUSINESS SYSTEM Add a Footer