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In Ghemawat's "Aggregation,Adaptation,Arbitrage" framework,the potential for a multinational enterprise to exploit arbitrage benefits are likely to be greater in a capital-intensive industry than in a labor-intensive industry
Multinational Conglomerate
A multinational conglomerate is a large corporation that owns a number of different companies in various industries and operates in multiple countries.
Downturn
A decline in economic activity or business performance, often signaled by reduced spending, investment, or employment.
Greenfield Venture
A Greenfield venture is a type of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Vertical Structuring
Determines where in a hierarchy a company’s decisions are made.
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