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Non-Equity Modes and Foreign Direct Investment – Implications for the Polish Economy

Author

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  • Teresa Pakulska

    (Warsaw School of Economics)

Abstract

Expression of the growing internationalization of business in the globalized economy are non-equity modes (NEMS). With respect to FDI should be seen as an alternative, but complementary forms of internationalization activities. NEMs include, for example, contract manufacturing, services outsourcing, contract farming, franchising and licensing, as well as other types of contractual relationship through which TNCs coordinate and control the activities of partner firms in host countries. Decision choice of above mentioned is influenced by such factors like transaction costs, benefits and risks associated with them. Due to determinants similar to the development of FDI can be considered as a factor in maintaining the effects of the internationalization of enterprises through FDI.

Suggested Citation

  • Teresa Pakulska, 2013. "Non-Equity Modes and Foreign Direct Investment – Implications for the Polish Economy," Acta Universitatis Nicolai Copernici, Ekonomia, Uniwersytet Mikolaja Kopernika, vol. 44(1), pages 27-40.
    • Handle: RePEc:cpn:umkanc:2013:p:27-40
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    More about this item

    Keywords

    non-equity modes; NEMs; FDI; contract manufacturing; determinants of MEMs; development implications of NEMs;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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