The producer of electric cars Tesla has recently announced its plans to build a large production plant in Germany. Discuss potential ownership, location and internalization advantages of this investment according to the OLI approach. Based on the Integration-Response Framework, which internationalization strategy and which organizational structure would you recommend for Tesla? (300 words max)
question 2
Lyft, Inc. is an American ridesharing platform that is a direct competitor of Uber Technologies, Inc. in the US market. Using Lyft as an example, explain the importance of network effects for business success in the presence of a competitor. Why did Lyft manage to successfully enter the US market for ridesharing and compete with Uber, i.e., why is ridesharing nota dominant firm industry? Explain by referring to concepts such as multi-homing costs, network effects and product differentiation.
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