IBS: Les 1

Question 1

NLB FSA

Answer 1

Corporate strengths that are technically transferable to foreign countries and can be profitably exploited there

Question 2

LB FSA

Answer 2

Cannot be transferred abroad, or can be transferred abroad but has little value there

Question 3

LA’s

Answer 3

Pertain to firms geographic areas, the existence of LAs abroad could motivate firms to undertake FDI

Question 4

Motivations for FDI

Answer 4

1. Natural resource seeking
2. Market seeking (relevant LA = customer presence)
3. Strategic resource seeking (relevant LA = presence of strong technological, managerial, or reputational resources)
4. Efficiency seeking (relevant LA = cheap labor, low taxes, customer closeness, avoidance of import tariffs,…)

Question 5

FDI

Answer 5

An investment that causes a firm to have a significant ownership stake in a foreign business entity.
Either Greenfield or acquisition

Question 6

Verschil FDI en Portfolio investmen

Answer 6

Bij portfolio investment is er geen desire for control

Question 7

Verschil FDI en Contractual expansion modes

Answer 7

Bij contractual expansie modes is er directe en indirecte export, outsourcing, licensing and franchising

Question 8

Wanneer FDI (OLI paradigma)

Answer 8

Ownership advantage
Location advantage
Internalization advantage