By Ron Holt
* offers various not obligatory extra workouts and actions to augment studying of the objective language* basically meant for school room use yet can also be used for homework assignments
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Extra info for Blue Skies: Workbook Bk. 1
The Strategies of the Developing MNC 29 Vernon’s product cycle theory Vernon’s product cycle theory (Vernon, 1966) is the link between the strategies of the early MNC and those of the established MNC. Vernon proposed that as geographic diversiﬁcation takes place the products of a MNC pass through a series of production and distribution phases. First, products are manufactured and sold domestically. Second, output is produced domestically and then exported. Third, output is both produced and sold abroad.
Much more often such expansion resulted from internal growth’ (Chandler, 1977: 474). Chandler was, however, aware of the rise in the 1960s of the ﬁnancial conglomerate form of the multidivisional enterprise. In this corporate form ‘The conglomerate expanded … entirely by the acquisition of existing enterprises, and not by direct investment into its own plant and personnel, and it often did so in totally unrelated ﬁelds’ (emphasis added) (Chandler, 1977: 481). The form remains relatively common today and, in some instances, has important implications for the nature of HQ-subsidiary relations.
It is analytically distinguished from the latter ‘know-what’ (or ‘know-that’) or declarative knowledge which is concerned with facts and propositions. Polanyi (1967) was exemplifying this ‘knowing how’ and ‘knowing what’ distinction when he described knowledge as either tacit or explicit. Tacit knowledge was tacit to the degree that it was incommunicable. Winter (1987) proposed that tacitness could be conceived as a variable with the degree of tacitness a function of the extent to which the knowledge could be codiﬁed.
Blue Skies: Workbook Bk. 1 by Ron Holt