Internationalization - selection, expansion, entry Flashcards

1
Q

Explain the three strategy processes of internationalization (approaches to market selection)

A

o A systematic approach, using a formalized decision process including various statistical methods to analyse the potential of target markets
• How a decision should be made
o An unsystematic approach, suggesting the use of rules of thumbs such as selection of those foreign markets that minimize the perceived psychic distance.
• Learning by doing – Uppsala model
o Thid approach in this article – the relationship approach
of Andersen & Buvik (2002)

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2
Q

define and explain objective- and experimental knowledge

A
objekctive = can be transferred and thought
learning = only learned through personal experience
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3
Q

Virtually trap - explain this term

A

virtual experience = insight knowledge about customer connections
non virtual experiences = insight knowledge not the market connections

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4
Q

explain some value based reasons for internationalization

  • furthermore give som examples of arbitrage benefits
A

scale benefits, arbitrage benefits, competitive pressures

benefits for arbitrage:

  • tax
  • flexibility
  • risk reduction
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5
Q

explain maybe draw

  • economic of scale
  • economic of scope
  • transaction cost
A
  • Discuss the answers
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6
Q
explain the different models and their function (in relation to M/P)
- positive
negative
inverted u shape
u shaped
sigmoid
A

see slides lecture 10

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7
Q

Define the shower/waterfall approach and link them to the terms diversification/concentration

A

see slide lecture 12

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8
Q

what are the market expansion strategies?

A

diversification, concentartion

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9
Q

define concentration and diversification and mention the author of the strategies

A

Ayal and Ziff (1979)

concentration = slow and gradual rate of growth

diversification = fast rate of groth regarding the markets served

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10
Q

Explain, draw and link the establishment chain’s relevans for the market expansion

A

see slide lecture 12

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11
Q

explain terms depth and breadth

A

D = depth of the respective business in the country

B = breadth of the respective MNE in the country

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12
Q

Define the three alternative selection strategies for market entry mode

A

naive rule, pragmatic rule, strategic rule.

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13
Q

name the two types of entry mode, and mention som advantages and disadvantages of the two

A

non-equity based mode & equity based mode

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14
Q

Who is the author of the equity-, and non equity based entry modes?

A

Pan Y (2000)

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15
Q

What is a joint venture?

A

A contractual partnership between two parties. They form a joint-venture company where they equally share the capital etc.

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16
Q

What influencing factors are there to choosing entry modes? And how are they related to the theoretical perspetives?

A

Hollensen:

  • Internal
  • External
  • Transaction-specific
  • Mode characteristics