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LO6 Lessla, a German automaker, only assembles its vehicles in that country. The company does not manufacture any vehicle components in Germany. Lessla decides to
LO6 Lessla, a German automaker, only assembles its vehicles in that country. The company does not manufacture any vehicle components in Germany. Lessla decides to begin component manufacturing in the Netherlands, and enters into FDI in that country. Lessla's investment in the Netherlands is an example of a(n) horizontal FDI OFPI upstream vertical FDI downstream vertical FDI LO6 When considering entry into a foreign market, a resource-based view suggests that foreign firms need to: be aware of the numerous regulatory risks and trade and investment barriers. understand the numerous differences in cultures, norms, and values. take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries. deploy overwhelming resources and capabilities to offset their liability of foreignness
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