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Differences between the theory of multinational enterprises and conventional trade theory?

Anonymous

∙ 13y ago

Updated: 9/28/2023

The conventional trade theory assumes perfect markets where transaction costs do not exist while the theory of multinational enterprises assume imperfect markets.

Wiki User

∙ 13y ago

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Continue Learning about Economics

What is the difference between multinational corporation and ordinary corporation?

One operates within one country, while the multinational is based in two or more.

What is intrafirm Trade?

Cross-border trade between multinational companies and their affiliates

Are transnational companies and multinational companies same if yes then what are there features advantages and disadvantages and if not then what are the differences between the two?

Multinational companies have investment in other countries, but do not have coordinated product offerings in each country. More focused on adapting their products and service to each individual local market.Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.

Mixed economy?

A mixed economy is a type of economic system. It is characterized by a system that is between public and private enterprises.

What are differences between public enterprise and private enterprise?

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