... concerns about control. Foreign countries are sometimes reluctant to transfer their vital resources for example capital, and management know-how to any organisation that can make operating decisions by itself. The company receiving the resources can thus gain a competitive advantage over the foreign company passing them on. We can go back to Bridgestone and say that they were reluctant to give product or process technology in their tyres to other companies. Control can decrease operating costs and increase the rate at which companies move technology. This is because: * There is a sharing of corporate culture amongst the parent and subsidiaries. * Managers understand objectives, which a company can use. * Negotiations can keep to a minimum with other companies. * Agreement problems can be avoided. FDI most of the time is an international capital movement. It crosses borders when the anticipated return is higher overseas than at home. Although transferring international capital is one ...

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