Week 7

Question 1

How can internationalizing firms gain & sustain competitive advantage?

Answer 1

1. FDI Based Theories
   > Monopolistic Advantage Theory
   > Internalization Strategy
   > Dunning’s Eclectic Paradigm (OLI Framework)
2. Non FDI Based Theories
   > International Collaborative Ventures
   > Networks & Relational Assets

Question 2

What are some types of International Collaborative Ventures?

Answer 2

1. Equity-based Joint Ventures

2. Project-based Alliances

Question 3

What is the OLI Framework?

Answer 3

1. Ownership Advantages
2. Location Advantages
3. Internalization Advantages

Question 4

How does the OLI Framework work?

Answer 4

1. If no ownership advantage => Remain domestic
2. If no location advantage => Produce @ home and export
3. If no internalization advantage => License
4. If all 3 present = FDI

Question 5

What are some Resource-Based Views?

Answer 5

1. Resources & Capabilities as a source of direction

2. Resources as a basis for corporate profitability

Question 6

What are the 6 major categories of resources?

Answer 6

1. Financial
2. Physical
3. Human
4. Technological
5. Reputation
6. Organizational

Question 7

What is the VRIOT Framework?

Answer 7

1. Valuable
2. Rare
3. Imperfectly Imitable
4. Organized
5. Transferability