Allgemeine Definitionen Flashcards
multinational enterprise (MNE)
a firm that engages in foreign direct investments and operates in multiple countries.
foreign direct investment (FDI)
– investments in controlling and managing value-added activities in other countries.
Triad (Emerging Economies)
North America, Western Europe and Japan
BRICS (Emerging Economies)
Acronym for the emerging economies of Brazil, Russia, India, and China
EAGLE (Emerging Economies)
Emerging and Growth Leading Economies
all emerging economies, whose contribution to world economic growth in the next
ten years is expected to be larger than the average of the G6 economies (Canada,
France, Germany, Italy, Japan, the United Kingdom).
Gross National Product - GNP (Measuring Economic Development)
− measures the total market value of all final goods and services produced by a country’s
residents.
− any output produced by foreign residents within the country’s borders must be excluded in
calculations of GNP.
− any output produced by the country’s residents outside of its borders must be counted.
Gross Domestic Product - GDP (Measuring Economic development)
− total market value of all final goods and services produced within a country in a given
period of time usually a calendar year.
Purchasing power parity (PPP) (Measuring Economic Development)
− adjustment made to the GDP to reflect differences in the cost of living
Institution-based Perspectiv of succes around the globe
An institution-based view suggests that the formal and informal rules of the game, known as institutions, shed light on what is behind firms’ performance around the globe.
– Some formal rules, such as the requirements to treat domestic and foreign firms as equals,
enhance the potential odds for foreign firms’ success.
– Informal rules such as culture, norms and values play an equally important part in shaping
the success and failure of firms around the globe.
Ressource-based View of succes around the globe
• The resource-based view focuses on a firm’s internal resources and capabilities.
• Resources can be exploited by the firm in order to achieve sustainable competitive advantage.
• Firms as Coca Cola and Microsoft possess firm-specific resources that enabled them to attain
leadership positions around the globe.
Liability of Outsidership
• Doing business outside one’s home country is challenging. Foreign firms have to overcome
a liability of outsidership: their inherent disadvantage due to lack of familiarity with local
contexts and networks.
• Primary weapon of foreign firms is overwhelming resources and capabilities that, after
offsetting the liability of outsidership, still result in some significant competitive advantage.
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Implications for Practice
• Factors hindering success in international business:
– Ethnocentric perspective: A view of the world through the lens of one‘s own culture.
– Not-invented-here-syndrom: The tendency to distrust new ideas coming from outside one‘s
own organization or community.
• International managers have to
– Think global
– Think loca
