Philips vs Haier: Comparative Case Studies

The mainstream economic argument in favor of FDI is the existence of positive spillovers. It is argued that domestic companies benefit from the information and knowledge about advanced technology, marketing and management techniques that MNCs bring into the host country. Spillovers may occur through various channels, such as the movement of employees from MNCs to domestic companies and the technical support of MNCs to domestic suppliers.

(firms) have overall – some have invested in foreign countries through FDI - felt that

From 2004 to 2012, the quantity of remote direct ventures has expanded more than the double, achieving USD 1,500 billion of every 2012. FDI has turned out to be one of the significant techniques for cross-outskirt venture and a standout amongst the most dynamic drivers of monetary development. Presently, I will propose a portion of the dangers of FID from the perspective of

Philips and Matsushita, two major competitors in the consumer electronic industry, followed different strategies to overcome different environmental factors over the century. Philips focused mainly on responsive national organizations with multi domestic strategy, while Matsushita focused on centralized and efficient operation through global strategy. However, not all implemented strategy was successful.

Is written solely for educational purposes for MBA and MSc student level. Authors have a vested interest in internal market growth represented by aggregate consumer sales was a significant determinant of FDI into Brazil.

Dunning & Rugman (1985) states that ‘Today, it is widely recognised that the theory of FDI is primarily the transfer of nonfinancial and ownership-specific intangible assets by the multinational enterprise (MNE), which needs to appropriate and control the rate of its internalised advantage.’ (Dunning & Rugman, 1985).

FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)

This essay will give a general introduction about the location choice of foreign direct investment (FDI). After that, it will focus on

Robert E. Lipsey and Fredrik Sjoholm, (2004) “The Impact of Inward FDI on Host Countries: Why Such Different Answers?” pp. 23-43 [Online] Available at:

The competitive advantages of service firms have been extended in terms of ownership, location and internalization advantages by Dunning (1989). As international competition in services grow, competitive advantage become increasingly important determinant of FDI in services. However, competitive advantages in services are difficult to measure and also transfer, especially if they are culturally and institutionally embedded. It is found that FDI is positively affected by the international competitiveness of the home country’s service industry.

Below are some of the legal and ethical issues that the organisation need to consider with regard to the gathering, processing, distribution and the use of information on the internet;

Foreign Direct Investment (FDI) is a venture made by an organization or element situated in one nation, into an organization or substance situated in an alternate nation. Outside immediate ventures vary generously from aberrant speculations, for example, portfolio streams, wherein abroad establishments put resources into values recorded on a country's stock trade. Elements making immediate ventures commonly have a huge level of impact and control over the organization into which the speculation is made. Open economies with talented workforces and great

Philips is a Dutch diversified technology company headquartered in Amsterdam with primary divisions focused in the areas of Healthcare, Consumer Lifestyle and Lighting. It was founded in Eindhoven in 1891 by Gerard Philips and his father Frederik. It is one of the largest electronics companies in the world and employs around 122,000 people across more than 60 countries. (Philips, 2011) Its profit (for the year 2012) amounted €226 million.

The most important FDI theory until 1990 was The Eclectic Paradigm, which is also called the OLI framework, established by John Dunning during the 1970’s. As stated by him, a firm’s investment decisions critically depend on three essential factors: ownership, location and internalization. Therefore, companies will invest in other

Arguments supporting FDI in developing countries suggest that recipient countries need to fulfill some preconditions to create a favorable business environment. It has certain advantages to both the host country and the investor. Host countries’ macroeconomic policy, tax regime, regulatory practices are critical determinants for attracting FDI.