MNEs

Multi-national Enterprises Rugman Flagship Firm says that MNE's have three characteristics 1. They have to be responsive to competitive and Governemental forces 2. They draw on a pool of resources home and abroad 3. They link their operations through a common strategic vision

What is their Strategy 1. To create value by transferring differentiated product offering developed at home abroad

Some themes How to they start 1 Maybe through licensing, agents and JV's

Why to they diversify abroad 1. Needs skills it doesnt have at home. Bangalore 2. Sell their products to new markets Sony 3. To spread risk across many trading areas Grand Met 4. To reduce costs - lower labor costs. Also produce larger volume and gain Scale Effects. Boeing

How global are MNE's - Most are not especially IS firms that large home markets. Only Philips sony Flextronics, Canon are truely Multi-national in terms of selling and manufacturing across many countries.