Chapter 1

<p>Complex production methods relying on in-house skill (tacit knowledge) (B)</p> Signup and view all the answers

<p>Producing standardized products at home and exporting them to new markets (B)</p> Signup and view all the answers

<p>Replicating its home operations and business model abroad (A)</p> Signup and view all the answers

<p>Implementing a global supply chain where each country specializes in a part of the production (A)</p> Signup and view all the answers

<p>Adapting to local needs and differences (national responsiveness) (B)</p> Signup and view all the answers

<p>A unique local supplier or a specialized factory (B)</p> Signup and view all the answers

<p>Identifying their firm-specific advantages (FSAs) and how they can be adapted. (D)</p> Signup and view all the answers

<p>Entrepreneurial know-how that is specific to the firm's original environment. (D)</p> Signup and view all the answers

<p>To access specialized knowledge or assets not available in their home country. (A)</p> Signup and view all the answers

<p>It provides readily available resources that can be directed toward new opportunities. (C)</p> Signup and view all the answers

<p>An MNE that specializes different stages of production across various countries, maintaining central coordination. (C)</p> Signup and view all the answers

<p>The firm should assess how well its existing FSAs align with the specific advantages of the location. (A)</p> Signup and view all the answers

<p>Reducing production costs. (B)</p> Signup and view all the answers

<p>An advantage developed at home that needs local knowledge or adjustments to be profitable in international markets. (C)</p> Signup and view all the answers

<p>Having managers who can identify new opportunities in the host country and utilize resources accordingly. (C)</p> Signup and view all the answers

<p>Multicentered MNE (D)</p> Signup and view all the answers

<p>Maintaining exclusive production in a domestic market. (D)</p> Signup and view all the answers

<p>A subsidiary develops a location-bound innovation, which is later refined with HQ collaboration for global transferability. (D)</p> Signup and view all the answers

<p>The external partner can offer resources or skills at a lower cost or faster pace than internal development, with acceptable risk levels. (B)</p> Signup and view all the answers

<p>It limits information processing and predictive accuracy, especially given the complexity and diversity of international markets. (B)</p> Signup and view all the answers

<p>The possibility of opportunistic behavior or preference changes that undermine commitments. (B)</p> Signup and view all the answers

<p>Each affiliate contributes specific local expertise to refine and expand the advantage before global rollout. (A)</p> Signup and view all the answers

<p>HQ actively assists in upgrading the successful local advantage to become internationally transferable. (C)</p> Signup and view all the answers

<p>It must be more efficient (cheaper or faster) to collaborate than to develop the resources internally, without incurring excessive risk. (D)</p> Signup and view all the answers

<p>A partner intentionally misrepresents their capabilities to secure a lucrative deal. (C)</p> Signup and view all the answers

<p>Multiple Affiliates Co-Develop (B)</p> Signup and view all the answers

<p>By fostering trust, conducting thorough due diligence, and establishing clear communication channels. (A)</p> Signup and view all the answers

<p>Examining how a firm interacts with a new host country, leveraging its unique advantages. (A)</p> Signup and view all the answers

<p>Choosing the best country or region, considering various forms of distance. (C)</p> Signup and view all the answers

<p>Seeking higher labor costs to improve the company's social responsibility image. (D)</p> Signup and view all the answers

<p>Know-how about using specific production processes or manufacturing products. (A)</p> Signup and view all the answers

<p>Reputational resource (B)</p> Signup and view all the answers

<p>Strategic Asset (Knowledge) Seeking (B)</p> Signup and view all the answers

<p>Cultural, geographic, economic, and legal differences. (A)</p> Signup and view all the answers

<p>Every country (C)</p> Signup and view all the answers

<p>A data-driven marketing campaign that significantly increases sales. (C)</p> Signup and view all the answers

<p>A partnership between two or more companies. (D)</p> Signup and view all the answers

The approach a firm takes to engage with foreign markets, leveraging unique advantages.

Critical areas firms evaluate when entering international markets, such as location and entry strategy.

Going international to find cheaper resources or raw materials.

Entering foreign markets to increase customer base for products/services.

Acquiring valuable knowledge, technology, or skills from abroad.

Considerations like cultural, geographic, economic, and legal differences when choosing a location.

Methods for entering a foreign market, such as subsidiaries or alliances.

How a firm's international presence affects its country of origin.

Building distinct resources to differentiate from competitors in international markets.

Physical, financial, human, knowledge, and reputational resources critical for success.

Firm-specific advantages that cannot be easily replicated in a different market.

Positive factors in a region that make it attractive for business operations.

The alignment of a firm's strengths with local market benefits for competitiveness.

Investment in a foreign country to control business operations instead of exporting.

Merging existing resources with new local resources to innovate and create more value.

Different ways a firm's advantages can adapt or stay specific to locations in international markets.

Competitive strengths developed initially for the home market, later adapted for international use.

Unique competitive strengths created by a foreign subsidiary tailored to its local market.

Pursuing lower costs or better positioning through international operations.

Entering foreign markets to expand customer base and drive sales.

Strengths that make a company uniquely competitive in its market.

Repeated patterns of actions that help a firm effectively use its resources.

Mixing and matching resources to adapt to local markets when expanding.

Competitive strengths that can be used in many countries without loss of effectiveness.

Benefits a firm has based on its home country's resources or conditions.

The ease with which an FSA can be copied or applied in new locations.

An MNE that produces at home and ships products abroad without local adaptation.

An MNE that replicates its home country operations in new markets.

Subsidiaries operate like independent hubs, each developing location-specific strengths.

Unique strengths that are difficult for competitors to replicate.

An affiliate develops a transferable advantage under HQ guidance.

A local invention is later adapted to be globally transferable with HQ's help.

Several affiliates collaborate to create a new transferable advantage.

Country affiliates refine a shared advantage using local expertise before global rollout.

Affiliates create a local advantage and later adapt it for international markets.

MNEs partner with outsiders to gain necessary resources in a cost-effective manner.

Managers' limited capacity to process information leads to incomplete decisions.

Promises may not be fully kept due to opportunism or changing preferences.

A party may cheat or betray an agreement for self-gain.

Sincere promises may fail as preferences change over time.