papers Flashcards
difference multinational and global cooperation
Multinational = product adapted to each country
Global corporation = homogeneous needs
effect technology on globalization
Technology > converging world > global markets standardized consumer products big scale
result globalization
homogenized needs
Physic distance
Perceived distance = behavioral concept capturing lack knowledge foreign market due to social/economic factors
Documentation (5)
- bill of lading (contract exporter-carrier)
- commercial invoice
- export declaration
- letter of credit
- certificate of origin
incoterms name + description: EXW FCA FOB CIF CIP DDP
EXW = ex works > buyer handles transportation + risk from agreed place FCA = free carrier > buyer handles transportation + risk from transport 1 FOB = free on board = seller handles until loading port CIF = cost insurance freight = seller handles until destination port, buyer handles risk from loading port CIP = carriage insurance paid > seller handles carrier + insurance until place of destination, buyer handles risk from 1st transport DDP = delivery duty paid = seller handles transport + risk until final delivery
how does liability of foreigness changes
Start by physic close countries = liability of foreignness
Because of bounded rationality + uncertainty
Changed because of experiences + committed changes
Liability of insidership
firms are linked in networks
Triad classification:
Home region oriented
Bi-regional
Host region oriented
Global
difference internationalization and globalization
Internationalization: increasing economic interdependence
Globalization: world is fully integrated market place
INV
International new venture = born global
uses hybrid entry strategies
Competence of local - strategic importance Low - low Low - high High - low High - high
Competence of local - strategic importance = strategy: Low - low = implementor Low - high = black hole High - low = contributor High - high =strategic leader
Procedural justice
perceived fairness + favorability > satisfaction sub top management
Aspects: communication, discrimination, challenged, full insights, involved descion-making
NSIs
NSIs = national systems of innovation
Creative and knowlegde-based industries > intangible assets > intellectual property
Control strategy - geographic location strategy = Vertical integration - concentrated Vertical integration - dispersed Specialization - concentrated Specialization - dispersed
Control strategy - geographic location strategy =
Vertical integration - concentrated = onshore inhouse
Vertical integration - dispersed = captive offshore
Specialization - concentrated = onshore outsourced
Specialization - dispersed = offshore outsource
vertical integration vs specialization strategy
Vertical integration strategy: linkage economies (vertical economies)
Specialization strategy: good in marketing/sales > architectural innovation (between incremental - radical innovation)
> with help of: Modularization = value chain must be decoupled
smiling curve
left (input R&D) right (output marketing) > combine comparative advantage multiple locations > maximize competitive advantage
