Monday, September 30, 2019
International business Essay
1.Which four archetypes does Verbeke distinguish? Draw the figures associated with these archetypes. Ã¢â¬ ¢ Centralized exporter Ã¢â¬ ¢ International projector Ã¢â¬ ¢ International coordinator Ã¢â¬ ¢ Multi-centered MNE 2.Is there one best model? Why or why not? No, there is no best model, because using which model is depends on host country and FSAs. 3.Do you consider a centralized exporter a true multinational? Yes, it has operation in more than one country. 4.What does it mean that the FSA is embodied in the product in case of an international exporter? Exporters develop products on the basis of a favorable home country environment, including local clustering, and make the exporting firm successful in international markets 5.Does the firm develop FSAs in the host country in case of the international projector? No, they just transfer the FSAs they developed in the home country, clone their operation 6.Why is the international coordinator an example of a global value chain? Because for international coordinators, International operations are specialized in specific value-added activities and form vertical value chains across borders. The key FSAs are in efficiently linking these geographically dispersed operations through seamless logistics. 7.Why is a multi-centered MNE characterized by maximum local responsiveness? Because multi-centered MNEs recognize that operating in each host country need to build distinct location-bounded FSAs. 8.The FSA is also framed in terms of core competences. That is the FSA is strongly related to the core competences of a firm. What key characteristics does Verbeke list for these core competences? Difficult to imitate Broadly used in variety markets Make a contribution to customer needs Large effect on firmÃ¢â¬â¢s present and future performance if lose this competence 9.What critique does Verbeke have on the concept of core competences? Overestimate the role of strategic management, underestimate the role of host country location factors. 10.What are the five forces that Porter distinguishes? Explain these in your own words Factor conditions: resources,Ã including natural resources, knowledge, labor, infrastructure etc. Demand conditions: market size and domestic buyer sophistication Related & supporting industries: high quality suppliers, being critical in related industries Firm strategy, structure and rivalry: highly competitive, home-based industry with efficient macro-level governance and several domestic rivals Government and chance: well-functioning but not corrupt government 11.How does PorterÃ¢â¬â¢s model fit in figure 1.2? Where does it belong? It belongs to home country location advantages 12.What is the big problem of PorterÃ¢â¬â¢s model when applied in the context of International Business? FSAs are totally domestically determined.