MGT 321 SEU FDI Preference over Licensing and Exporting among Firms Discussion

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MGT 321 SEU FDI Preference over Licensing and Exporting among Firms Discussion

Business Finance, Saudi electronic university

MGT 321 SEU FDI Preference over Licensing and Exporting among Firms Discussion

Question Description

I’m working on a management discussion question and need an explanation and answer to help me learn.

why do companies go to the trouble of establishing operations abroad through foreign direct investment when two alternatives, exporting and licensing, are available to them for exploiting the profit opportunities in a foreign market? or why do so many companies prefer FDI over either exporting or licensing?

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