Market-seeking FDI is an investment undertaken to exploit new markets or sustain existing markets (Dunning & Lundan, 2008, p.70). For instance, because of tariffs and other barriers, the company may relocate production to host country where exporting had served it previously. The key factors that encourage this kind of investment...
Quarterly estimated tax payments must be made by taxpayers every quarter, and to be more precise, it is usually April 15, June 15, September 15, and January (IRS, n.d.). Social Security Tax has been paid in America since 1937 (SSA, n.d.). The tax rate has been constant over the years,...
Cross cultural risk refers to the notable differences in lifestyle, language, customs, mindsets, and religions in target countries. Under this risk, the firms face challenges in understanding the important needs of the people which is important in making strategic decisions. In order to mitigate the risk, the firms should...
Effects of a one-time devaluation Devaluation is the official change of the value of a country’s currency in relation to other foreign currencies. The main aim of devaluation is to create a stable international economy by creating a fixed and stable exchange rate system thus increasing the foreign exchange reserve...
Principal-agent theory Principal Agent theory is the general problem of motivating one person or an institution to act on behalf of another. Principal hires an agent to carry tasks on his behalf. The agent thereby influences the welfare of the principal. The relationship provides a useful framework for analyzing situations...
Introduction Economic and financial crises are common phenomena, even though their occurrence is not frequent. Few crises have global devastating effects as exemplified by the 2008 financial crisis. Economists and other experts can debate about the actual causes of the incident without necessarily reaching a consensus. However, the basic idea...
The intangible benefits are critical gains that position an organization to carry out its functions successfully and lead to improved safety, product quality, and enhanced employee loyalty (Oprean-Stan, Stan, & Brătian, 2020). Identifying the potential intangible benefits help an organization determine whether to accept or decline the investment proposal. For...
Abstract While several factors dictate the shape of the international economy in the 21st current century, other external aspects, which are important in the framework of globalization processes, affect the growth of world economic systems. In this context, the research identifies and assesses the ramifications of globalization knowhow on the...
The economy in a situation of globalization acquires special characteristics. Globalization is the international distribution of different products and goods, but also various flows, services, and such things as data, information, and capital. It is not only a material process, but a discourse as well. The global economy has particulars...
Economic models help explain the processes of acquisition, distribution and consumption of resources in society. However, any theoretic construct requires a number of variables to be consistent in order to create a summative conclusion. In the case of economic models, the most complex variable is human behavior. People are driven...