IPE Project
Storyboard Text
- We would like to buy your factory here in India, so we can expand our company outside of the United States!
- What type of foreign direct investment is the company going to use to become a multinational cooperation ?
- Sold
- Well, we really haven't decided yet. We honestly wanted your opinion on the matter.
- Sold
- A business entity creates duplicativeproduction facilities invarious countries. This kind of investment captures the full value of the intangible assets they control.
- The first option you would have is Horizontal integration. Just look at the board and see what you think!
- When firms invest in particular aspects of their mode of production, they are making use of specific assets. Can be helpful when an asset cannot be shifted from one use to another.
- The second option you could use would to use Specify Asset!
- This is the one, Steve!
- A firm uses vertical integration when they wish to control each stage of the production process. For example, a Grocery store that only sells products it produces uses vertical integration.
- Lastly, you have the option of using Vertical Integration!
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