Riassunto esame Internazionalizzazione dei mercati, prof. Baroncelli, libro consigliato International Business Management, Hill

IDE:

- più costosi → costi per crare nuova produzione

- più rischi → nuovo paese, problemi con cultura o problemi legali.

EXPORT:

- meno rischi

- meno costi → però si devono considerare costi di trasporto per export che rendono meno vantaggiosa la

cosa o ci possono essere delle barriere all'entrata.

2. Licensing - granting a foreign entity the right to produce and sell the firm’s product in return for a

royalty fee on every unit that the foreign entity sells (→si garantisce all'impresa estera di

produrre/vendere prodotti dell'impresa in cambio di una royalty)

- Internalization theory (as know as market imperfections theory) - compared to FDI licensing is less

attractive

• firm could give away valuable technological knowhow to a potential foreign competitor

• does not give a firm the control over manufacturing, marketing, and strategy in the foreign country

• the firm’s competitive advantage may be based on its management, marketing, and manufacturing

→licenziatario

capabilities potrebbe non essere efficiente

Questi tre punti sono 3 inconvenienti delle licenze, quindi IDE sono più convenienti se:

• know-how non può essere protetto adeguatamente da contratti

• richiede troppo controllo su licenziatario

• le abilità e le conoscenze non sono acquisibili dell'azienda

What Is The Pattern Of FDI?

Question: Why do firms in the same industry undertake FDI at about the same time and the same locations?

Knickerbocker - FDI flows are a reflection of strategic rivalry between firms in the global marketplace

 - multipoint competition -when two or more enterprises encounter each other in different regional

→

markets, national markets, or industries L'idea è di garanture che i rivali non acqustino una

posizione dominante sul mercato e usare i profitti generati per sovvenzionare l'attacco competitivo

in altri mercati →

Vernon - firms undertake FDI at particular stages in the life cycle of a product le imprese fanno IDE

 quando la domanda nel paese di destinazione è supportata da una produzione locale e possono investire

in località a basso costo.

Nb. Questa teoria non considera che in alcune occasioni possano essere più convenienti l'export o le

licenze. 4

Question: But, why is it profitable for firms to undertake FDI rather than continuing to export from home

base, or licensing a foreign firm?

Dunning’s eclectic paradigm - it is important to consider

 - location-specific advantages - that arise from using resource endowments or assets that are tied to a

particular location and that a firm finds valuable to combine with its own unique assets

- externalities - knowledge spillovers that occur when companies in the same industry locate in the

same area

What Are The Theoretical Approaches To FDI?

The radical view - the MNE is an instrument of imperialist domination and a tool for exploiting host

 countries to the exclusive benefit of their capitalist-imperialist home countries

- in retreat almost everywhere

→ MNE fanno profitti nel paese ospitante e li portano in patria, non lasciando valore nel paese ospitante

→ Teoria ritirata per 3 motivi:

i. crollo del comunismo in est Europa

ii. anche nei paesi dove c'era questa visione ci sono stati notevoli sviluppo economici e si comincia a

pensare che gli IDE siano un'importante risorsa che può stimolare la crescita

iii. perfomance di economie prima radicali sono aumentate grazie al capitalismo

The free market view - international production should be distributed among countries according to the

 theory of comparative advantage

- embraced by advanced and developing nations including the United States and Britain, but no

country has adopted it in its purest form

Pragmatic nationalism - FDI has both benefits (inflows of capital, technology, skills and jobs) and costs

 (repatriation of profits to the home country and a negative balance of payments effect)

- →

FDI should be allowed only if the benefits outweigh the costs i paesi adottano i nazionalismo

pragmatico per massimizzare i benefici nazionali e minimizzare i costi

Recently, there has been a strong shift toward the free market stance creating

 - →

a surge in FDI worldwide è cresciuto due volte più velocemente della crescita commerciale

mondiale

- an increase in the volume of FDI in countries with newly liberalized regimes, such as China, India,

Vietnam

How Does FDI Benefit The Host Country?

There are four main benefits of inward FDI for a host country



1. Resource transfer effects - FDI brings capital, technology, and management resources

- Techology: accesso a risorse finanziarie non disponibili nel paese ospitante. La tecnologia stimola

lo sviluppo economico e l'industrializzazione, in due modi:

• tecnologia incorporata in un processo produttivo

• tecnologia incorporata in un prodotto

- Management: aumenta l'efficacia delle operazioni nel paese ospitante

2. Employment effects - FDI can bring jobs. Può essere:

- →

diretto MNE assumono cittadini del paese ospitante

- →

indiretti si creano nuovi posti di lavoro grazie agli investimenti

3. Balance of payments effects - FDI can help a country to achieve a current account surplus in 2 ways:

- se IDE sono sostitutivi all'import di beni e servizi, si può generare un miglioramento della

bilancia dei pagamenti per il paese ospitante

- se le MNE usano filiali complementari per esportare in altri paesi

4. Effects on competition and economic growth - greenfield investments increase the level of competition

→

in a market, driving down prices and improving the welfare of consumers aumenta il numero di attori

nel mercato e aumentano le scelte per i consumatori

- can lead to increased productivity growth, product and process innovation, and greater

→

economic growth effetti nel lungo periodo

What Are The Costs Of FDI To The Host Country? 5

Inward FDI has three main costs:



1. Adverse effects of FDI on competition within the host nation

- subsidiaries of foreign MNEs may have greater economic power than indigenous competitors

because they may be part of a larger international organization

Si può generare monopolio, quindi un aumento dei prezzi e una diminuzione dei benefici per i consumatori.

Questo può accadere in paesi che hanno poche grandi imprese (paesi poco sviluppati).

M&A possono modificare la situazione di concorrenza perchè acquisiscono una o più imprese; si

potrebbero generare monopoli, diminuisce la scelta per i consumatori e aumentano i prezzi.

2. Adverse effects on the balance of payments

- when a foreign subsidiary imports a substantial number of its inputs from abroad, there is a debit

on the current account of the host country’s balance of payments

3. Perceived loss of national sovereignty and autonomy

- decisions that affect the host country will be made by a foreign parent that has no real

commitment to the host country, and over which the host country’s government has no real

control

How Does FDI Benefit The Home Country?

The benefits of FDI for the home country include



1. The effect on the capital account of the home country’s balance of payments from the inward flow of

foreign earnings →

2. The employment effects that arise from outward FDI aumento occupazione data da una maggiore

domanda di beni e servizi da esportare

3. The gains from learning valuable skills from foreign markets that can subsequently be transferred back

→

to the home country es. tecniche di management migliori che possono essere applicate nel paese di

origine, contribuendo alla crescita economica

What Are The Costs Of FDI To The Home Country?

1. The home country’s balance of payments can suffer

- from the initial capital outflow required to finance the FDI

- if the purpose of the FDI is to serve the home market from a low cost labor location

- if the FDI is a substitute for direct exports

2. Employment may also be negatively affected if the FDI is a substitute for domestic production

- But, international trade theory suggests that home country concerns about the negative economic

effects of offshore production - prduzione estera (FDI undertaken to serve the home market) may

not be valid (potrebbe essere fuori luogo)

may stimulate economic growth and employment in the home country by freeing resources



to specialize in activities where the home country has a comparative advantage

How Does Government Influence FDI? HOME COUNTRY POLICIES

Governments can encourage outward FDI

 - government-backed insurance programs to cover major types of foreign investment risk:

i. assicurazione estera contro i rischi

ii. assistenza al capitale

iii. incentivi fiscali

iv. pressioni politiche

Governments can restrict outward FDI

 - limit capital outflows, manipulate tax rules, or outright prohibit FDI (→ per ragioni politiche)

How Does Government Influence FDI? HOST COUNTRY POLICIES

Governments can encourage inward FDI

 - offer incentives to foreign firms to invest in their countries

• gain from the resource-transfer and employment effects of FDI, and capture FDI away from other

→

potential host countries meno tasse, meno interessi, etc

Governments can restrict inward FDI

 - use ownership restraints and performance requirements 6

Restaints: esclusione da alcuni settori es. tabacco in Svezzia per due ragioni:

1. sicurezza nazionale e meno concorrenza

2. imprenditori locali possono aiutare a massimizzare il trasferimento di risorse e il numero di

impiegati

Perfomance: relativo ai contenuti locali, agli export, alle tecnologie trasferite e alla partecipazione

→

di manager locali pratica comune in paesi poco sviluppati.

How Do International Institutions Influence FDI?

Until the 1990s, there was no consistent involvement by multinational institutions in the governing of

 FDI

Today, the World Trade Organization (WTO) is changing this by trying to establish a universal set of

 rules designed to promote the liberalization of FDI

What Does FDI Mean For Managers?

Managers need to consider what trade theory implies about FDI, and the link between government

 policy and FDI

The direction of FDI can be explained through the location-specific advantages argument associated

 with John Dunning

- however, it does not explain why FDI is preferable to exporting or licensing, must consider

internalization theory

A host government’s attitude toward FDI is important in decisions about where to locate foreign

 production facilities and where to make a foreign direct investment

- firms have the most bargaining power when the host government values what the firm has to offer,

when the firm has multiple comparable alternatives, and when the firm has a long time to com