Non-Equity Modes and Foreign Direct Investment – Implications for the Polish Economy

Teresa Pakulska ()
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Teresa Pakulska: Warsaw School of Economics

Acta Universitatis Nicolai Copernici, Ekonomia, 2013, vol. 44, issue 1, 27-40

Abstract: Expression of the growing internationalization of business in the globalized economy are non-equity modes (NEMS). With respect to FDI should be seen as an alternative, but complementary forms of internationalization activities. NEMs include, for example, contract manufacturing, services outsourcing, contract farming, franchising and licensing, as well as other types of contractual relationship through which TNCs coordinate and control the activities of partner firms in host countries. Decision choice of above mentioned is influenced by such factors like transaction costs, benefits and risks associated with them. Due to determinants similar to the development of FDI can be considered as a factor in maintaining the effects of the internationalization of enterprises through FDI.

Keywords: non-equity modes; NEMs; FDI; contract manufacturing; determinants of MEMs; development implications of NEMs (search for similar items in EconPapers)
JEL-codes: F21 F23 R30 (search for similar items in EconPapers)
Date: 2013
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