International Businesses

Question 1

How is a controlling interest called

Answer 1

foreign direct investment
example: subsidiary, joint ventures

Question 2

how is a non controlling interest called

Answer 2

portfolio investement
ex: investment, pensions

Question 3

3 types of companies with FDI

Answer 3

multinational corporations
multinational enmterprises
transnational companies

Question 4

4 opportunities for FDI in Western MNE

Answer 4

• consumer demand
• work productivity
• innovativeness
• market potential

Question 5

characteritics of transnational companies

Answer 5

• work under common strategy
• share knowledge, resources and responsabilities
• strategic decisions are taken in the HQ

Question 6

what is trade gdp ratio

Answer 6

indicator of the relative importance of international trade in the economy of a country

Question 7

why smaller companies export less

Answer 7

• lack of resources
  -limited production
• fear of risk
• lack of knowledge
• limited network

Question 8

what are the 3 factors that should be considered when internationalizing a company

Answer 8

• physical
  -instituional
  -competitive environment

Question 9

2 types of physical factors

Answer 9

geographic like island vs country
demographic like life expectancy
(time zone, Weather, level of education)

Question 10

examples of institutional factors

Answer 10

-political system
- values and beliefs
-salaries
-currency
-behaviours

Question 11

examples of competitive environment

Answer 11

• market type
  -available infrastructure
  -quality of supply chains
  -bank reputation
• competition
• product strategy