In this case scenario, engaging in FDI like Samsung did could keep the lead firm away from problems like the one examined above. Furthermore, Colin Haslam, Nick Tsitsianis and Y Ping Yin (2013) also state that “Samsung also runs its manufacturing facilities and this account’s for the relatively higher share of labour costs in value retained. It manufactures screens, chips and other parts for its smartphones and tablets in comparison to Apple which designs its devices but relies on outsourcing”(ibid). At this point this would lead us to believe that sometimes a firm might try to avoid such operations due to the fact that relying on suppliers that are in a certain way unstable or that could become potential competitors: in this scenario engaging in FDI could be a better decision, since relying excessively on suppliers could lead to major
In this case scenario, engaging in FDI like Samsung did could keep the lead firm away from problems like the one examined above. Furthermore, Colin Haslam, Nick Tsitsianis and Y Ping Yin (2013) also state that “Samsung also runs its manufacturing facilities and this account’s for the relatively higher share of labour costs in value retained. It manufactures screens, chips and other parts for its smartphones and tablets in comparison to Apple which designs its devices but relies on outsourcing”(ibid). At this point this would lead us to believe that sometimes a firm might try to avoid such operations due to the fact that relying on suppliers that are in a certain way unstable or that could become potential competitors: in this scenario engaging in FDI could be a better decision, since relying excessively on suppliers could lead to major