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Explain the internalization theory of FDI. What are the weakness and strength of the theory?
Answer: As per to the internalization theory, firms which have intangible assets along with a public good property tend to undertake FDI to take benefit of the assets on a large scale and, at similar time, stop misappropriation of returns from the assets that may take place during arm’s length transactions in foreign countries. The theory can be efficient in describing green field investments, but not in describing mergers and acquisitions.
Optimal Cash Model: Cash Management is a bigger aspect that involves range of functions that assist individuals and business to process their payments and receipts in an organ
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Critical investment decisions may be taken based on the ratings offered by the credit rating agency. In order to ensure that the rating leads to good investment d
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Ask queswtion #Minimum 100 words accepted# what are the characteristics of debt finance? What are the similarities and differences between debt finance and ordinary share capital
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