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Business
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| Number of pages / Number of words: |
9 / 2299 |
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The rational was to have the help of a local partner and win the governments favour. 2) On the other hand, the introduction of textiles and clothing into the GATTs (Dicken 2004) undoubtedly benefited Inditex?s expansion in the non European market, and lastly 3) their own objectives in which, Inditex?s prevailing strategy is the wholly owned subsidiary formula...
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Establishing a wholly owned subsidiary can be done in two ways. The firm can acquire an established firm or as Inditex did, set up a new operation in that country: Greenfield Venture (Hill 2007). One of the barriers Inditex had to face pursuing this strategy was to bear with the full capital costs. Besides, doing business with a new culture could also be a major problem...
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General points of the essay
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