In this approach, competition will be overshadowed by a concept of externalities which features both positive and negative spillovers transmitted beyond prices.
As externalities diffuse globally, so will the risks and rewards creating a global contagion pattern which will require idiosyncratic modeling of its own. In the new model, instead of having a framework which is broken between the local and the global, and that is further broken into exogenous and endogenous, we conceive the MNE as a highly connected global entity, which extends continuously from local to global.
(This is the reason we offer the conceptualization of the firm as a connecting surface rather than an island of resource bundles.)
In this approach, competition will be overshadowed by a concept of externalities which features both positive and negative spillovers transmitted beyond prices. As externalities diffuse globally, so will the risks and rewards creating a global contagion pattern which will require idiosyncratic modeling of its own. In the new model, instead of having a framework which is broken between the local and the global, and that is further broken into exogenous and endogenous, we conceive the MNE as a highly connected global entity, which extends continuously from local to global.(This is the reason we offer the conceptualization of the firm as a connecting surface rather than an island of resource bundles.)
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