Forelæsning 10

Question 1

Emerging countries

Answer 1

a transitional phase between developing and developed country.

These countries offer low labor cost for MNE from developed countries.
These countries are often very different in terms of legislation, regulation and authorities.
Emerging markets are often described as having structural holes and much information asymmetry.

Question 2

Vertical expansion

Answer 2

• Securing production of raw material or component (backwards) or distributive/sale of goods and service (forward)

Question 3

Horizontal expansion

Answer 3

-Reproducing HQ into SDs and setting up whole production and distribution or acquiring similar company turning into SD.

Question 4

Born Globals

Answer 4

“Entrepreneurial start-ups that, from or near their founding, seek to derive a substantial proportion of their revenue from the sale of products in international markets” (Knight and Cavusgil 2004, p. 124).

• The trend has been facilitated by globalization, the internet and other communication innovations, which have reduced the cost of internationalization, fostering foreign expansion of smaller, resource-poor companies.
• Born Globals are often smaller firms with limited tangible resources.