Financial Performance of the International Business Planning: Localization and Trade in Theory of Krugman's "New Economic Geography" (NEG)

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Author	Andr�s laskai
ISSN	2307-2466
On Pages	43-49
Volume No.	3
Issue No.	1
Issue Date	February 01, 2020
Publishing Date	February 01, 2020
Keywords	business plan, business planning, financial instruments, international business planning

Abstract

With regard to content, my thesis will compare the theoretical and practical findings used by practical schools of economics, which appear to be completely different to each other, to the Krugman's theories used by (regionalist) schools of theoretical economics. The founding point of my thesis is localization and trade. According to Krugman, a significant part of the industry is geographically concentrated, which provides an important source of international specialization and trade. The comparison between countries and regions does not correspond to the market competition between companies. In contrast, applied-economics (business-management) schools see the basis for competitiveness, innovation and profitability in business planning and in the business plan, such as a sub-branch of controlling. Today, findings in the most recent literature break through Krugman's earlier theses. By overwriting theoretical economics regionalistic dogmas, corporate finance and business planning see the way out of the crisis through the doctrines of the extension of the territorial units.

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