Final project proposal - Assignment Example

Factors affecting Foreign Development Investments Introduction Internationalization refers to the process of expanding enterprises in international markets. Over recent decades, there has been an increasing level of internationalization in every kind of industries, which has led to a rapid growing interest in gaining and maintaining competitive advantage on new international trade arenas (Casillias et. al., p26).As a result, today more and more worldwide known companies prefer to operate in foreign markets through two distinct strategies of internationalization, that is,exports or foreign direct investment (Conconi et. al., p13).

Internationalization theory postulates that production by one company as opposed to many companies is much beneficial and this is one of the major reasons why most company would rather extend its operations to different location (internationationalization). (Bayraktutan& Yusuf, 23) In providing accounts why internationalization has survived in unlikely environment, suggests that technological transfer among the Multinational Corporations has played a key role in that, most of the developing countries are not able to access modern technologies that are associated with large production.

This makes it possible for the Multinational Enterprises (MNE) to get access to such developing nations because of their financial muscles.2. Problem Definition This thesis aims to investigatethe world’s largest companies’decision whether to internationalize through foreign direct investment into highly uncertain foreign markets or not. 3. Solutions The objective will be followed by the inquiry which deals with the question of how these companies should behave in terms of entry mode, subsidiaries, activities performed.

The paper especially has the purpose of assessing how Multinational Enterprises deal with uncertainty once the decision of establishing an FDI has been reached.Work CitedCasillias, J./ Moreno, A./ Acedo, F./ Gallego, M./ Ramos, E. (2009): An integrative Model of The Role of Knowledge in The Internationalization Process, in: Journal of World Business, 2009-07, Volume 44, Issue 3, pp. 311-322