Fins Report Government of Tropicalia

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Uppsala University Department of Business studies Management of International Business FINS Report Government of Tropicalia Team-Members: Christian Blum Dominik Hungen Table of contents: 1. Introduction 2. Foreign Market Entry Modes and their consequences for the negotiations during FINS 3. (Inter-)Organizational Learning and Knowledge Transfer supported by a government 4. Trust and opportunism in strategic alliances * Theory * Trust and opportunism during the FINS 5. Conclusion References Figure 1 Figure 2 Appendix 1. Introduction: During the ”Foreign Investment Negotiation Simulation” (FINS) we have met a…show more content…
This fact (or maybe this claim) has been proved by the behaviour of the negotiation teams from Megatronics, Tanaka and Eurodata. During the FINS-simulation the different multinational companies (Megatronics and E.T.) pursuit different strategies: While Megatronics was trying to avoid any cooperations with local companies (that also means no employment of capital) agreed E.T. to invest (relative high employment of capital) into Joint Ventures with local firms if the governments give them some safeguards to reduce risks and if it provides some economic support. According to the political and economic situation in Tropicalia and Paradiso the initial position for the government in the negotiations was difficult. The government was supposed to convince multinational companies to invest in the country – that means to chose a market entry mode with capital employment. After the merger of Tanaka and Eurodata to E.T. it became clear in a very early stage of the negotiations that E.T. would be the only company who was willing to invest in foreign markets and would not just try to exploit local advantages without taking any closer relationship to their cooperation partners or the local market. This means that there was no real competition any longer between different companies who wants to invest in the fast growing market of Tropicalia. As only one company was

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