Firm resources, competitiveness and Growth

Question 1

Resource based view

Answer 1

• Focuses on a firms internal resources and capabilities
• The liability of ownership - infers the more a firms origins differ from the host environment, the less experience the firm has in the host country

Resources: competitive advantage

• Valuable
• Rare
• Imperfectly imitable
• Sustainability

Question 2

Porter’s Value Chain

Answer 2

• Sequential chain of the main activities that a firm undertakes. Any firm is composed of a series of distinct value creating activities
• Support activities; firm infrastructure, human resource management, tech development, procurement
• Primary activities; inbound logistics, operations, outbound logistics, marketing and sales, service

Question 3

Multinational Enterprise MNE

Answer 3

• MNE is any business that has productive activities in tow or more countries. Not all MNEs are large but most large firms are MNEs
  Characteristics;
• Integrated cross-national authority structures
• Varied economic activities

Question 4

Large MNEs characteristics

Answer 4

• Substantial direct investment in foreign activities
• Active management of offshore assets
• Management integration of operations located in different countries
• Sizeable investment in R&D

Question 5

Born Global as a focal firm

Answer 5

• Leapfrogging the internationalisation process
• Usually niche players, typically exhibit a high degree of innovation, borderless mindset
• Usually leverage information and comms technology
• make up the fastest growing segment of exporters in most countries

Question 6

Distribution Channel Intermediary

Answer 6

• Specialises in the physical distribution and marketing; connects the focal firm with the end user
• Especially critical to exporters that do not engage in FDI
• Based either in the foreign market or home country

Question 7

Facilitators

Answer 7

• Assist the focal firm with specialised services required in IB
• Logistics
• Customers broker