Foreign Direct Investment In Ethiopian Agricultural Sector - Mengestia, Aschalew
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To increase profitability, some transactions should be carried out within a firm rather than between firms and this is one of the reasons why multinational companies exist. In other words, there are transactions that should be internalized to reduce transaction costs and hence increase profitability. This theory may answer the question why production is carried out by the same firm in different locations. One of the reasons of internalization is market imperfection. Any kind of economically useful knowledge can be called technology.

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Produktbeschreibung
To increase profitability, some transactions should be carried out within a firm rather than between firms and this is one of the reasons why multinational companies exist. In other words, there are transactions that should be internalized to reduce transaction costs and hence increase profitability. This theory may answer the question why production is carried out by the same firm in different locations. One of the reasons of internalization is market imperfection. Any kind of economically useful knowledge can be called technology.
Autorenporträt
I have been working as lecturer for the department of Business Administration in Adama University, which is one of the elder Universities in Ethiopia selected as a Model International University planning to be a center of excellence in business and engineering since 2007. I was in Jimma University for my MBA and in Bahir Dar university for my BA.