Internalization theory is a branch of economics that is used to analyses international business behavior. It provides an explanation of why multinational business activity is concentrated in innovative knowledge-intensive industries, and in industries where the quality of components and raw materials is difficult to measure and control. Before internalization theory it was widely believed that multinational firms transferred capital to a foreign country, while afterwards it was recognized that it is mainly knowledge that they transfer; capital is transferred, if at all, mainly to protect the knowledge and to appropriate profit from its exploitation abroad.
Summary 17
Literature list 18
Introduction
Introduction to Internalization
Internalization theory is a branch of economics that is used to analyses international business behavior. It provides an explanation of why multinational business activity is concentrated in innovative knowledge-intensive industries, and in industries where the quality of components and raw materials is difficult to measure and control. Before internalization theory it was widely believed that multinational firms transferred capital to a foreign country, while afterwards it was recognized that it is mainly knowledge that they transfer; capital is transferred, if at all, mainly to protect the knowledge and to appropriate profit from its exploitation abroad.
Aims:
• Introduce the company
• Identify problems of company
• Find solutions for problems
Introduction to OTP Bank
OTP Bank Group is one of the largest independent financial services providers in Central and Eastern Europe with full range of banking services for private individuals and corporate clients. OTP Group comprise large subsidiaries, granting services in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. The bank is serving clients in 9 countries, namely Hungary, Slovakia, Bulgaria, Serbia, Romania, Croatia, Ukraine, Montenegro and Russia. All of the banks' markets carry a high potential for growth in the future. Owing to economic and legal considerations OTP Group provides its universal financial services through several subsidiaries. In Hungary traditional banking operations are performed by the Bank while specialized services, including car leasing, investment funds and insurance are developed and offered by the Bank's subsidiaries. The Banking Group expands its operations throughout the region via its foreign subsidiaries.
History
The predecessor of OTP Bank, called the National Savings Bank (OTP Bank) was established in 1949 as a nation-wide, state-owned, banking entity providing retail deposits and loans. In the ensuing years, its activities and the scope of its authority gradually widened. First, it was authorized to...
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