International Management: When a company vertically integrates and decides to open up manufacturing facilities for instance, arbitrage opportunities arise. Big companies are most likely to invest in a contry with a low labor cost. They are leveraging arbitrage in terms of a cheap workforce.
Ex. H&M, ZARA, Nike etc

Question

When a company vertically integrates and decides to open up manufacturing facilities for instance, arbitrage opportunities arise. Big companies are most likely to invest in a contry with a low labor cost. They are leveraging arbitrage in terms of a cheap workforce.
Ex. H&M, ZARA, Nike etc

David Ursu · Accepted Answer

Link these concepts: "Vertical integration" & "Arbitrage"

International Management

When a company vertically integrates and decides to open up manufacturing facilities for instance, arbitrage opportunities arise. Big companies are most likely to invest in a contry with a low labor cost. They are leveraging arbitrage in terms of a cheap workforce. Ex. H&M, ZARA, Nike etc

Link these concepts: "Vertical integration" & "Arbitrage"

Author