Intro to IB additional content from lectures and videos

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Frage Antworten
Power perspective
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dominate the market not to get eaten
Value chain perspective
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engage in value chain, decentralize production, reduce risk
Agglomeration perspective
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be where the action is
FDI substitutes
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market seeking, trying to get around tariff walls, horizontal
FDI complements
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efficiency or strategic asset seeking, vertical
Patterns of FDI – firms in the same industry:
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- Similar strategic behavior - The same location o Strategic rivalry -> multipoint competition
The arm’s length
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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.
Internalization
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Companies perform activities within the boundaries of the firm, rather than acquiring them in the market.
Risks associated with exporting are:
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• increasing transportation costs • introduction of tariffs (or other trade barriers) • increasing bureaucracy
Risks associated with licensing are:
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loss of reputation/misuse of the brand name • intellectual property risks
Psychologically proximate
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being similar to the home country in terms of institutional environment and/or culture.
Uppsala model, main reason for a gradual internalization process
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Internalization comes with uncertainty, limited knowledge – limit risk, limited commitment – means learning, means reducing uncertainty, means more learning
Born global
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the inception is to create advantages from the use of resources and outputs in multiple countries – internalize quickly
Difference between equity modes
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equity has an ownership, non-equity are contracts
3 Is of CSR
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Issues, Ideology, Institutions
MNE provoke unease in society
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due to too much power and control and exploiting labor and environment
Tragedy of commons
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overuse of the resources – have to reduce
Wicked problem
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impossible to identify a single cause or a solution
Sustainability
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meets the goals of the present without compromising the needs of future generations around the world
Friedmanite position
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the business of business is business
Carroll’s 4 responsibilities
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Economic, legal, ethical, discretionary (must, has, should, might DO)
Stakeholder theory
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broad range of actors influencing the firm, considering not only stakeholders but others impacted by a strategy of the firm
Stakeholder theory, why is it complex for MNE to address CSR
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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
MNE Strategy
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how the MNE leverages its R&Cs to create value across the MNE’s activities.
MNE Structure
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how the units of the MNE relate to / interact with one another in support of the strategy?
Need’s of integration relation with resource based view
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synergies between operations in multiple countries/efficient use of resources – RBW – resources and capabilities
Examples of adaptation
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cars are relatively standardized in every country, but food not because there are different preferences
Upstream activities
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inputs and production of goods
downstream
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distribution and sales of those goods
distinction between upstream and downstream not that clear for MNEs
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some subsidiaries do single activity like sales and other do multiple
Examples of upstream and downstream process optimization
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Upstream – integration with suppliers and amount of inventory Downstream – managing retail relationships
Subsidiary roles
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- Receptive - Active - Autonomous

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