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In 1974, he or she expanded his operations in Australia
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jenniferfelix

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MessaggioInviato: Lun Giu 24, 09:44:31    Oggetto:  In 1974, he or she expanded his operations in Australia
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Any method
that requires a immediate investment in foreign operations is categorised as a foreign direct expenditure of money. International trade and licensing is not regarded as being FDI because it doesn`t demand direct investment in international operations. Franchising and joint undertakings involve some investment but to a limited degree.

Acquisitions and new subsidiaries
require large investment therefore represent a substantial proportion of FDI. Many International Companies use a combination of methods to increase global business. For example the progression of Nike began in 1962 when a business student at Stanford`s business school, wrote a document on how a U. S. firm could use Japan technology to break the German dominance from the athletic shoe industry in north america.

After graduation, he visited
the Unitsuka Tiger boot company in Japan. He made a licensing understanding with that company to make a shoe that he sold in north america under name Blue Bow Sports (BRS). In 1972, your dog exported his shoes for you to Canada. In 1974, your dog expanded his operations in to Australia. In 1977, the provider licensed factories in Korea and Taiwan to make athletic shoes and then sold them in Asian countries.

In 1978, BRS grew to be Nike, Inc.,and began to export
to Europe and South America. As a consequence of its exporting in addition to its direct foreign expenditure, Nike's international sales reached $1billion by 1997 and more than $7 billion by simply 2010.

A decision of why companies undertake FDI in comparison with other modes of entry may be explained by OLI paradigm. The paradigm tries that will explain why companies choose FDI in comparison to other modes of entry
such as licensing, synovial ventures, franchising.
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