Emerging Multinationals Are Finding Ways to Succeed That Do Not

question 68

Essay

Emerging multinationals are finding ways to succeed that do not necessarily conform to the notion of OLI advantages. Describe how the LLL framework does a better job of capturing the basis of their success.

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Definitions:

Contribution Margin

The margin between the income from sales and the costs that vary, illustrating the amount of revenue available for offsetting fixed expenses and yielding a profit.

Annual Fixed Costs

Costs that do not vary with the level of production or sales over the year, such as rent, salaries, and insurance.

Financial Advantage

Any benefit or gain, in financial terms, that improves the economic situation of an entity or individual.

Unit Product Cost

The total cost incurred to produce a single unit of a product, including materials, labor, and overhead.