Questions and Answers
What does Comparative Management explore?
The landscape, contours, and national patterns of development
What does Cross-Cultural Management give analytical significance to?
National culture as the key variable in examining acceptable management practice
According to Friedman, how did he describe the world?
As one single globalised marketplace driven by the spread of free market capitalisation
What does Hyper-globalisation refer to?
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What does MNC stand for in the context of 'Intra-Firm MNC'?
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What does Authoritarianism refer to?
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Which legal system is characterized by laws based on religious beliefs and teachings?
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What does PEST analysis evaluate for business?
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What is the degree of unfamiliarity with a foreign business location's culture known as?
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What are the risks associated with government changes, tax system changes, and impediments to factor of production transfer collectively known as?
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What is the right to patent known as in the first to file system?
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What type of entry mode involves international licensing, franchising, and wholly owned subsidiary?
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What is the Culture Psychic Distance Paradox?
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What do Horizontal Mergers involve?
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What can result in De-internationalization?
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What do Diversification alliances involve?
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What does Global Strategy refer to?
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What did Levitt (1983) predict?
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What are the different types of expatriate assignments mentioned in the text?
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How are expatriates classified in the text?
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What are the key factors contributing to culture shock in expatriates according to the text?
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What are the stages included in the repatriation model issues mentioned in the text?
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What is one of the challenges of repatriation mentioned in the text?
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What is the definition of globalization provided in the text?
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What is a characteristic of Wholly Owned Subsidiary as an international business entry mode?
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What are the determinants at the country level that impact international business, as mentioned in the text?
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What is a potential reason for the failure of Joint Ventures (JVs) as a form of Global Strategic Alliances (GSAs)?
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What do Hofstede's cultural dimensions impact in the context of international business?
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What is a key feature of Foreign Direct Investment (FDI) entry modes?
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What is a characteristic of Global Strategic Alliances (GSAs) in the context of international business?
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Study Notes
International Business Entry Modes and Strategies
- Multinational corporations (MNCs) need dynamic capabilities for sustained competitive advantage, not just existing resources
- Wholly Owned Subsidiary offers 100% ownership in a new country and increased flexibility and control
- Production under license involves contracting out production subject to intellectual property rights
- Foreign Direct Investment (FDI) entry modes include market-related, production-related, resource-related, and control of strategic assets
- Country competitiveness measures the effectiveness of countries in sustaining domestic and international competitiveness
- Country level determinants include science, education, innovation, economic soundness, finance, and internationalization
- Firm level determinants involve technology innovation and factor creation
- Individual level determinants include entrepreneurs, managers, engineers, educators, and politicians
- Global Strategic Alliances (GSAs) are cross-border partnerships between firms from different countries to improve competitive advantage
- Joint Ventures (JVs) are a popular form of GSAs and offer advantages such as risk-sharing and local acceptance
- Joint Ventures can fail due to loss of autonomy, conflict, technology leakage, strategic goal differences, and future competition
- Hofstede's cultural dimensions include power distance, individualism, masculinity, long-term orientation, uncertainty avoidance, and indulgence, impacting international business decisions.
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