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Determine the horizontal and vertical forms

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According to OECD Benchmark Definition of Foreign Direct Investment, 2008, a foreign direct investment (FDI) is a key driver of international economic integration. A foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country.

FDIs can also be classified into horizontal and vertical forms. A company investing in the same business abroad that it operates domestically is a case of a horizontal FDI. On the other hand, vertical FDI occurs if a company invests in a business that plays the role of a supplier or a distributor.

a. Analyze the basic issues that any company must take into consideration when choosing an entry mode for a new foreign market?

b. A strategic alliance refers to cooperative agreements between potential or actual competitors. It also happens when cooperation between international firms in many forms, for example, cross licensing of proprietary technology and sharing of production technology.
Based on the above statement, discuss any THREE (3) benefits partners are likely to gain from their strategic alliance.

Reference no: EM133085309

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