Why IFM different from DFM?
Operate within & across different political,legal, legislative and cultural systems
Use different currencies so active in FE market
Have access a range of domestic &international capital markets
Operate with and across a range of productand factor market each with different level ofproductivity, efficiency and competition.
Why IFM decisions differs from FM?
The degree of difference depends on thefollowing factors
The degree of involvement in theinternational monetary system
The degree of involvement in theinternational economic environment
The degree of difference betweendomestic and international economy
Why MNE are operating?
MNE are operating in a risky global environment.But the continue to thrive because:
Market imperfections are common betweencountries so opportunities are there forexploitation.
MNE could exploit their advantages in –
Economies of scale and scope
Managerial & technical expertise
Ability to differentiate products
Strong financial backing and ability to raise capital