BU1540 International Business Week 7 - Week 10

Question 1

What is the Integration Responsiveness Grid (IR)

Answer 1

provides straightforward framework to organize analysis.

Question 2

What is the formal arrangement of roles, responsibilities, and relationships in the MNE represents

Answer 2

organization structures

Question 3

What are the strategy types used by MNEs

Answer 3

International, localization, Global and Transnational

Question 4

What are the 4 types of Knowledge Governance

Answer 4

Knowledge retention, knowledge sharing, knowledge transmission, knowledge utilization.

Question 5

In the context of mergers and acquisitions, what term is used to call the similarity in organisational cultures, systems and structures?

Answer 5

Organisational fit refers to the cultural and structural characteristics of the two organisations that affect the ability to integrate the acquired company.

Question 6

Which of the following is NOT a motivation for cross-border M&A?

Answer 6

Philanthropy and foreign aid.

Question 7

Type of International Business

Answer 7

The type of international businesses: Private companies (MNEs, SMEs, INVs), NGOs and SOEs

Question 8

What are the forms of international partnership?

Answer 8

Merger, Acquisition, alliances

Question 9

represents a combination of assets of two firms to establish a new legal entity. What type of partnership is this?

Answer 9

Merger

Question 10

the assets of the acquired firm (target) are absorbed by the acquirer

Answer 10

Acquistion

Question 11

What is a resource driven acquisition?

Answer 11

focuses on defining the needs for the project, and obtaining the right resources for the team and other resources and tools available to manage the effort

Question 12

Fair Labor Associations

Answer 12

external independent monitoring, compliants procedures and public reporting

Question 13

What is a GDP?

Answer 13

measures as the sum of value added by resident firms, households, and government operating in an economy.

Question 14

GNP?

Answer 14

In addition to GDP, GNP measures earnings of non resident sources. earnings sent back to Mexico.

Question 15

GNI

Answer 15

New term no difference between GNP and GNI (gross national income)

Question 16

Transfer of control of operations and management from one firm (target) to another (acquirer), the former becoming a unit of the later

Answer 16

Acquisition

Question 17

M&A involving companies based in different countries

Answer 17

Cross - border M&A

Question 18

Carve out acquisition

Answer 18

acquisition of parts that another company previously were not clearly defined organizational units

Question 19

Synergies meaning

Answer 19

between two merging organizations mean that the new organization is more valuable than the two organizations separately. Add value

Question 20

Hubris

Answer 20

managers overconfidence in their own capabilities.

Question 21

What are the motives for acquisitions?

Answer 21

Synergistic motives, hubris motives, managerial motives

Question 22

What are strategic alliances?

Answer 22

Collaboration between independent firms using equity modes, non-equity contractual agreements, or both.

alternative to a full take over:
JV’s joint ventures
research and collaboration
joint production

Question 23

Due Diligence

Answer 23

Due Diligence the assessment of the target firms financial status, resources and strategic fit.

Question 24

Which of the following best describes the meaning of capability?

Answer 24

A firm’s ability to utilise resources to achieve organisational outcomes.

Question 25

Which of the following can be an example of a challenge in the process of managinga cross-border M&A?

Answer 25

Lack of familiarity with foreign and institutions.

Question 26

Which of the following statements about M&A is TRUE?

Answer 26

M&As often fail because executives are paying attention only to the surface of the acquired company’s mission statement, expecting it to blend with that of their own company.

Question 27

MNEs are the primary drivers of the flows of investments, trade and knowledge across national borders true or false

Answer 27

True

Question 28

what are the 3 debates of Globalization?

Answer 28

process causes consequences

Question 29

How does distance increase risks?

Answer 29

distance between home and host economy, political, geographical, economic and cultural. Countries' transportation and infrastructure.

Question 30

Provide a list of the the Multinationals theory?

Answer 30

Ownership and location advantages. Foreign firms required ownership (or competitive) advantages over their local rivals. Second ownership advantage lies in superior management and organization techniques. Third source of ownership advantage can be found in finance. Locational Factors.

Question 31

What are the internationalization and the boundaries of firms?

Answer 31

Transactions cost theories.

Question 32

What are the 3 types of transactions cost theories?

Answer 32

Rationality Opportunism Asset specificity.

Question 33

What are the components of knowledge based theories of the firm?

Answer 33

First the strategy of the firm or how it designs and rationalizes its objectives and how it intends to pursue them. Is the structure of the firm or how it is organized and governed. How the strategy and structure mold organizational capabilities.

Question 34

What is the eclectic paradigm of international production?

Answer 34

maintains that firms will engage in international production if they possess ownership advantages in a particular foreign market. Ownership specific advantages internationalization incentives advantages location specific advantages.

Question 35

What is strategy in relation to international business?

Answer 35

then we ask the question, when you go international, what does that mean. what is the strategy of the firm going international, why? responding to local markets. In simple terms, strategy refers to a firm's long-term vision, underpinned by goals, values, and principles. In a corporate world, strategy can also be called a strategic plan that is presented in a document and published on the company website.

Question 36

what is a specific strategy for international business?

Answer 36

Costs is specific. What firms try to do within the constraints of what they can achieve. What kind of strategy adjustments do you have to make in order to actually go international. So when we look at strategy in the international context, then we've got to start thinking

Question 37

What are the analytical frameworks for strategy?

Answer 37

Firm specific resources and capabilities. (FSRCs): setting goals and objectives.

Question 38

What are the international strategy process and specifics? (specific set of issues)

Answer 38

increasing geographic spread building cross-national economic integration adapting to local conditions pursuing markets, resources and strategic assets.

Question 39

What are the goals of multinational strategies?

Answer 39

``` search for new markets. the search for new resources production efficiency seeking technology seeking the search for lower risk countering the competition. ```