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This 7 page paper examines a variety of theories. Examples are provided. Bibliography lists 7 sources.
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7 pages (~225 words per page)
File: RT13_SA832iet.rtf
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there are many legal issues that come into play. Contract law is generally different in one state than in another. For example, if two businessmen from different nations enter into
a contract, there may very well be significant differences in law. At the same time, if a contract is made between someone in Germany and another individual in France, for
example, the similarities in law will outweigh the differences (Nayer, 2005). For the most part, actors must adhere to treaties that exist in the countries the do business in and
they must comply with the law in both of the states. Generally, attorneys will work things out. Still, many corporations will want to use caution when expanding. The question is,
do they hold back, or plunge forward despite the consequences? According to one theory, corporations proceed slowly. Yet, there are many theories related to international expansion that are worth exploring.
It seems to be the case that ownership-specific endowments are relevant in the scheme of things (Luo, 1999). Intangible assets and property rights play a part in an organizations ability
to expand (Luo, 1999). When international expansion takes place, firms are able to transfer capital (Luo, 1999). International expansion is "a way of further exploiting the value-creation potential of skills
an product offerings by applying them in new markets" (Luo, 1999, p.11). With the use of MNE theories, one can see that internationalization is related to government structures (Luo, 1999).
An MNE is a "group of geographically dispersed and goal-disparate organizations that include its headquarters and different national subsidiaries" (Luo, 1999, p.12-13). Dunning claims that there are two different types
of conditions that influence international expansion (Luo, 1999). One is structural market distortion (Luo, 1999). This comes about when governments intervene, and this has the effect of changing costs of
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