In the clothing industry firms compete successfully by applying different business-models. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses on outsourcing and ZARA’s business-model mainly focuses on in-house production. The problem is that the existing theories alone cannot explain why two firms competing in the same environment under the same conditions choose different business-models
Pattern of Foreign Direct Investment in Emerging Economies: An Exploration
Until recently major part of FDI flows had been among developed economies with similar relative factor endowments, income levels and market institutions such as property rights regimes. Consequently, major theoretical streams of FDI in economics could simplify FDI as a substitute for intra-industry trade by incorporating transportation costs and economies of scale (multi-plants). In the [...]
Foreign Direct Investment in Mexico: Possible Effects on the Economic Growth
The purpose of this paper is to examine whether foreign direct investment, FDI, has any impact on economic growth in Mexico. In order to find a possible connection I use a multiple regression analysis with GDP per capita as dependent variable. Furthermore, I critically examine previous studies of FDI and its effect on GDP per [...]
The Impact of FDI on Growth in Developing Countries: An African Experience
In recent years, policymakers, especially in the developing countries, have come to the conclusion that foreign direct investment (FDI) is needed to boost the growth in their economy. It is claimed that FDI can create employment, increase technological development in the host country and improve the economic condition of the country in general. The paper [...]
Foreign Direct Investment in cohesion to employment
This Thesis (Foreign Direct Investment in cohesion to employment – case of Poland) has examined the FDI effects on employment in the case of Poland. The main objective is proving how foreign capital inflows affect on job creation and recent unemployment rate (from 1991-2007) in different economic sectors. Valuable foundation has been discovered that indicate [...]