Podcast
Questions and Answers
Which of the following is NOT a type of distance considered when making location decisions in international business?
Which of the following is NOT a type of distance considered when making location decisions in international business?
Which of the following is NOT a key decision question in international business strategy?
Which of the following is NOT a key decision question in international business strategy?
A multinational enterprise (MNE) seeking to gain access to new technology or skills in a foreign country is pursuing which type of reason for going international?
A multinational enterprise (MNE) seeking to gain access to new technology or skills in a foreign country is pursuing which type of reason for going international?
Which of the following is NOT considered a reputational resource for a multinational enterprise (MNE)?
Which of the following is NOT considered a reputational resource for a multinational enterprise (MNE)?
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Which of the following is NOT an example of an entry approach in international business?
Which of the following is NOT an example of an entry approach in international business?
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Which of the following statements best reflects the core principle of Firm-Specific Advantage (FSA) when it comes to routines?
Which of the following statements best reflects the core principle of Firm-Specific Advantage (FSA) when it comes to routines?
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What is the most significant benefit of developing routines in a firm's international expansion strategy?
What is the most significant benefit of developing routines in a firm's international expansion strategy?
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Which of the following statements accurately reflects the importance of routines for a firm's international success?
Which of the following statements accurately reflects the importance of routines for a firm's international success?
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Based on the information provided, what is a crucial factor in utilizing routines effectively within the context of international expansion?
Based on the information provided, what is a crucial factor in utilizing routines effectively within the context of international expansion?
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How does the concept of “firm-specific advantages” relate to the development and implementation of routines in an international context?
How does the concept of “firm-specific advantages” relate to the development and implementation of routines in an international context?
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Flashcards
Firm-Specific Advantage (FSA)
Firm-Specific Advantage (FSA)
Unique advantages a firm has due to its resources and location.
Routines
Routines
Repeated actions or decisions that streamline resource use.
Resource Combination
Resource Combination
The effective use of various resources to create advantages.
Strategic Expansion
Strategic Expansion
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Impact on Host Country
Impact on Host Country
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International Business Strategy
International Business Strategy
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Key Decision Questions
Key Decision Questions
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Reasons for Going International
Reasons for Going International
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Types of Resources
Types of Resources
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Unique Resource Development
Unique Resource Development
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Study Notes
International Business Strategy
- International business (IB) examines how a company interacts with a foreign country. Every company possesses unique products, skills, or knowledge. A company must determine how to leverage these advantages in foreign markets or establish operations.
Key Decision Questions
- Location: Choosing the optimal country or region, considering factors like cultural, geographic, economic, and legal differences.
- Entry Strategy: Strategies include establishing a subsidiary, forming alliances, acquiring local firms, or forming partnerships.
- Impact: Evaluating the effects of operations on the company's home country and the host country, including job creation, competition, community impact, and environmental effects.
Reasons for Going International
- Efficiency/Resource Seeking: Seeking cheaper resources or raw materials.
- Market Seeking: Entering new markets to expand sales.
- Strategic Asset/Knowledge Seeking: Gaining access to valuable technology, skills, or assets.
Developing Unique Resources
- Physical Resources: Factories, machinery, raw materials.
- Financial Resources: Investment capital and loans.
- Human Resources: Skilled employees with entrepreneurial and operational capabilities.
- Upstream Knowledge: Product creation and production processes.
- Downstream Knowledge: Marketing, sales, distribution, after-sales service.
- Administrative Knowledge: Organizational structure, management styles, company culture.
- Reputational Resources: Brand recognition and reputation.
Firm-Specific Advantage (FSA)
- A strong "FSA" arises from effectively combining resources and strategic locations. This advantage results in competitive edge, such as innovative products/services, patent protections, and strong branding.
Routines
- Routines are repeatable actions that efficiently leverage resources. They represent a company's methods for operating and must be refined to maintain competitiveness. A company needs to continuously update its routines, not just develop one-time resources.
Summary (Key Takeaways)
- Determine the unique attributes of your company: its resources, skills, and knowledge.
- Plan global expansion based on strategic objectives such as cost reduction, market access, or knowledge acquisition.
- Establish ongoing routines for effective utilization of resources.
- Understand the effects of expansion on both the home and host countries.
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Description
Test your knowledge on international business strategies, including location selection, entry strategies, and their impacts on home and host countries. This quiz will challenge your understanding of the factors influencing a company's operations across borders and the reasons for expanding internationally.
