Oxford OX1 5NY, UK c Solvay Business School, University of Brussels (V.U.B.), Brussels, Belgium Abstract Globalization is very important for small economies such as Korea and Singapore. The single diamond model (Porter, 1990, The competitive advantage of nations) suggests some important determinants for a nation’s global competitiveness. However, this model is incomplete, mainly because it does not incorporate multinational activities. A new approach, the generalized double diamond model (Moon
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competition- Has many small sellers The product is basically identical Relatively easy to enter the industry Individual firms have no control over price The buyer will purchase from the lowest price source * Monopolistic competition-Has few to many sellers The product is seen as unique by some buyers, but not necessarily all A differentiated brand provides the firm with some control over pricing * Oligopoly-A few large suppliers dominate the market High barriers to entry The products
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resource bundles is the basis for new entry opportunities. A resource bundle is created from the entrepreneur's market knowledge, technological knowledge, and other resources. The new entry has the potential of being a source of sustained superior firm performance if the resource bundle underlying the new entry is valuable, rare, and difficult for others to imitate. Therefore, those wishing to generate an innovation need to look to the unique experiences and knowledge within themselves and their
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sales. 2. For the MNC, agency costs are typically: a. non-existent. b. larger than agency costs of a small purely domestic firm. c. smaller than agency costs of a small purely domestic firm. d. the same as agency costs of a small purely domestic firm. 3. Which of the following theories identifies specialization as a reason for international business? a. theory of comparative advantage. b. imperfect markets theory. c. product cycle theory. d. none of these. 4. Which of the following theories identifies
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Chapter 12: The Strategy of International Business [1] In a world of zero transportation costs, no trade barriers, and nontrivial differences between nations with regard to factor conditions, firms must expand internationally if they are to survive. Discuss. Comments: The theory of comparative advantage suggests that activities should take place in the countries that can perform them most efficiently, given that different countries are endowed with different factors of production. If there
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2: Dell could stay in Brazil but go to another state Option 3: Dell should stay put and negotiate with the new Governor | Lecture 2 | Lecture 2 | 3 | Pizza Hut in Brazil Case Study 1. What are the location-specific advantages that Brazil has to offer? How do these advantages differ from those offered by other markets in Latin America? Should Pizza Hut put more of its efforts in expanding in Brazil or somewhere in South-East Asia? Why? 2. What dimensions of local political and economic environment
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Modes of entry into an International Business:- There are some basic decisions that the firm must take before foreign expansion like: which markets to enter, when to enter those markets, and on what scale. Which foreign markets? -The choice based on nation’s long run profit potential. -Look in detail at economic and political factors which influence foreign markets. -Long run benefits of doing business in a country depends on following factors: - Size of market (in terms of demographics)
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cross-border business transactions in the recent past. Widespread sharing of technology, global economic shifts, and international governance among others, have been the enabling factors. Visionary business leadership has transformed national-level firms into robust multinationals that dispense a wide variety of goods and services to a scale never witnessed before. As many companies yearn to take their business internationally, they face ever-present challenges in the new business arena. Managers,
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cross-border business transactions in the recent past. Widespread sharing of technology, global economic shifts, and international governance among others, have been the enabling factors. Visionary business leadership has transformed national-level firms into robust multinationals that dispense a wide variety of goods and services to a scale never witnessed before. As many companies yearn to take their business internationally, they face ever-present challenges in the new business arena. Managers,
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| | |GENERAL MANAGEMENT & STRATEGY | |Fall Semester, 2010 | |[pic]
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