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commencer à apprendre
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dominate the market not to get eaten
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commencer à apprendre
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engage in value chain, decentralize production, reduce risk
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Agglomeration perspective commencer à apprendre
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commencer à apprendre
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market seeking, trying to get around tariff walls, horizontal
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commencer à apprendre
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efficiency or strategic asset seeking, vertical
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Patterns of FDI – firms in the same industry: commencer à apprendre
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- Similar strategic behavior - The same location o Strategic rivalry -> multipoint competition
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commencer à apprendre
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The companies are independent of one another and trade based on contractual arrangements. There is no ownership from one company of the other.
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commencer à apprendre
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Companies perform activities within the boundaries of the firm, rather than acquiring them in the market.
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Risks associated with exporting are: commencer à apprendre
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• increasing transportation costs • introduction of tariffs (or other trade barriers) • increasing bureaucracy
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Risks associated with licensing are: commencer à apprendre
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loss of reputation/misuse of the brand name • intellectual property risks
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Psychologically proximate commencer à apprendre
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being similar to the home country in terms of institutional environment and/or culture.
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Uppsala model, main reason for a gradual internalization process commencer à apprendre
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Internalization comes with uncertainty, limited knowledge – limit risk, limited commitment – means learning, means reducing uncertainty, means more learning
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commencer à apprendre
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the inception is to create advantages from the use of resources and outputs in multiple countries – internalize quickly
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Difference between equity modes commencer à apprendre
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equity has an ownership, non-equity are contracts
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commencer à apprendre
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Issues, Ideology, Institutions
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MNE provoke unease in society commencer à apprendre
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due to too much power and control and exploiting labor and environment
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commencer à apprendre
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overuse of the resources – have to reduce
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commencer à apprendre
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impossible to identify a single cause or a solution
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commencer à apprendre
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meets the goals of the present without compromising the needs of future generations around the world
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commencer à apprendre
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the business of business is business
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Carroll’s 4 responsibilities commencer à apprendre
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Economic, legal, ethical, discretionary (must, has, should, might DO)
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commencer à apprendre
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broad range of actors influencing the firm, considering not only stakeholders but others impacted by a strategy of the firm
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Stakeholder theory, why is it complex for MNE to address CSR commencer à apprendre
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Different stakeholders, different issues, cannot prioritize. Cannot do the same in all countries in the same degree. More countries, more complexity – variety of strategic dilemmas
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commencer à apprendre
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how the MNE leverages its R&Cs to create value across the MNE’s activities.
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commencer à apprendre
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how the units of the MNE relate to / interact with one another in support of the strategy?
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Need’s of integration relation with resource based view commencer à apprendre
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synergies between operations in multiple countries/efficient use of resources – RBW – resources and capabilities
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commencer à apprendre
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cars are relatively standardized in every country, but food not because there are different preferences
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commencer à apprendre
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inputs and production of goods
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commencer à apprendre
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distribution and sales of those goods
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distinction between upstream and downstream not that clear for MNEs commencer à apprendre
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some subsidiaries do single activity like sales and other do multiple
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Examples of upstream and downstream process optimization commencer à apprendre
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Upstream – integration with suppliers and amount of inventory Downstream – managing retail relationships
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commencer à apprendre
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- Receptive - Active - Autonomous
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