International Trade and Comparative Advantage

IntroductionThe aim of this article is to help employees realize why multinational corporations are looking for sources of comparative value by investment funds funds in developing countries. The organization I stupefy selected for the purpose of this paper is KFCKFCKFC operates in 74 countries and territories throughout the world. It was founded in Corbin, Kentucky by Colonel Harland D. Sanders. In 1964, the Colonel decided to sell the business to deuce Louisville businessmen. In 1966 they made KFC public and the political party was registered on the New York shop Exchange. In 1971, Heublein, Inc. acquired KFC, soon after, conflicts erupted between the Colonel (which was workings as a public relations and goodwill ambassador) and Heublein perplexity over lumber control issues and restaurant cleanliness. In 1977 a back-to-the-basics strategy was success luxurianty implemented. By the time KFC was acquired by PepsiCo in 1986, it had grown to round 6,600 units in 55 countries and territories. Due to strategic reasons, in 1997 PepsiCo spun absent its restaurant businesses (Pizza Hut, Taco Bell and KFC) into a new company called Tricon Global Restaurants, Inc.

Reasons for going overseasCompanies move beyond domesticated grocerys into planetary markets for the fol firsting reasons:?Potential demand in foreign market?Saturation of domestic markets?Follow domestic customers that go foreign?Bandwagon effectComparative advantageSome countries possess unique natural or human resources that fall through them an edge when it comes to producing particular products. This factor, for example, explains sec Africas dominance in diamonds, and the baron of developing co untries in Asia with low wage rates to repu! gn successfully in products assembled by hand. Technological advantageIn one country a particular assiduity, lots encouraged by organization and spurred by the efforts of a a couple of(prenominal) firms, develops a technological advantage over the rest of the world. For example, the united Sates dominated the computer industry for many years because of... If you inadequacy to get a full essay, order it on our website: OrderEssay.net

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