Exam Questionsa and Answers on Business Ownership
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Running head: EXAM QUESTIONS AND ANSWERS
EXAM QUESTIONS AND ANSWERS
Name of the Student
Name of the University
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EXAM QUESTIONS AND ANSWERS
Name of the Student
Name of the University
Author Note
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1EXAM QUESTIONS AND ANSWERS
Answer to Question 1
(A) Ownership advantages can be defined as the competitive benefits that are gained by
organizations that aim to engage in the foreign direct investment or FDI based
activities. The companies are more likely to engage in foreign direct investment if
they have gained more competitive advantages. The competitive advantages of
investing firms are able to play a key part in ensuring the foreign direct investment.
The theory of ownership advantage mainly suggests that an organization which owns
a valuable asset is able to form a competitive advantage on a domestic basis. The
ownership advantage can also be used by the organizations to penetrate foreign
markets with the help of FDI (Adeola, Boso and Adeniji 2018). Outward foreign
direct investment or OFDI has the ability to increase the investment competitiveness
of a country and is able to ensure the long term growth of organizations. The
production processes are upgraded and new development based channels are also
formed with the support that is offered by the sustainable growth of organizations.
The extensive distribution networks can also be used by the organizations in order to
enhance the revenues and levels of profitability as well. The organizations belonging
to emerging markets can thereby implement OFDI in order to enhance their
operations and reach a larger group of consumers as well. Internationalization process
of the organizations is supported in a huge manner by the implementation of OFDI
and the use of various benefits that are provided by this method as well (Ahi et al.
2017).
(B) The lack of ownership advantage of the firms that belong to emerging countries can
have a key influence on the methods by which they aim at implementing OFDI or
Answer to Question 1
(A) Ownership advantages can be defined as the competitive benefits that are gained by
organizations that aim to engage in the foreign direct investment or FDI based
activities. The companies are more likely to engage in foreign direct investment if
they have gained more competitive advantages. The competitive advantages of
investing firms are able to play a key part in ensuring the foreign direct investment.
The theory of ownership advantage mainly suggests that an organization which owns
a valuable asset is able to form a competitive advantage on a domestic basis. The
ownership advantage can also be used by the organizations to penetrate foreign
markets with the help of FDI (Adeola, Boso and Adeniji 2018). Outward foreign
direct investment or OFDI has the ability to increase the investment competitiveness
of a country and is able to ensure the long term growth of organizations. The
production processes are upgraded and new development based channels are also
formed with the support that is offered by the sustainable growth of organizations.
The extensive distribution networks can also be used by the organizations in order to
enhance the revenues and levels of profitability as well. The organizations belonging
to emerging markets can thereby implement OFDI in order to enhance their
operations and reach a larger group of consumers as well. Internationalization process
of the organizations is supported in a huge manner by the implementation of OFDI
and the use of various benefits that are provided by this method as well (Ahi et al.
2017).
(B) The lack of ownership advantage of the firms that belong to emerging countries can
have a key influence on the methods by which they aim at implementing OFDI or
2EXAM QUESTIONS AND ANSWERS
outward foreign direct investment. The firms that have their own valuable assets and
a major competitive advantage in the domestic market can use OFDI effectively in
order to enter a new country. The competitive advantages are considered to be useful
for the organizations to attract foreign direct investments. The organizations having
ownership advantage are also considered to be more likely to engage in the process of
foreign production and they can also easily increase their reach in the industry. OFDI
is thereby used a major channel by the organizations in order to gain a long term and
sustainable growth in the industry (Adeola, Boso and Adeniji 2018). The production
processes of organizations will be upgraded and levels of competitiveness will be
upgraded due to the implementation of OFDI by the firms that already have an
ownership advantage. The organizations belonging to emerging countries have
become more dependent on the OFDI in order to internationalize their operations.
The investing firms in developing countries are also considered to be a major factor
that has an impact on the internationalization plans of the firms (Alexander and Joe
2019).
Answer to Question 2
Joint venture is considered to be a solution that can be applied by the organizations in
order to start the international operations in a different country along with another company.
Joint venture is not similar to a partnership agreement as it has a definite end and is based on the
agreement or contract that is formed between the companies. The implementation of joint
ventures can however provide major advantages and disadvantages to the firms that are a part of
the developed agreement (Adeola, Boso and Adeniji 2018).
Advantages of a joint venture –
outward foreign direct investment. The firms that have their own valuable assets and
a major competitive advantage in the domestic market can use OFDI effectively in
order to enter a new country. The competitive advantages are considered to be useful
for the organizations to attract foreign direct investments. The organizations having
ownership advantage are also considered to be more likely to engage in the process of
foreign production and they can also easily increase their reach in the industry. OFDI
is thereby used a major channel by the organizations in order to gain a long term and
sustainable growth in the industry (Adeola, Boso and Adeniji 2018). The production
processes of organizations will be upgraded and levels of competitiveness will be
upgraded due to the implementation of OFDI by the firms that already have an
ownership advantage. The organizations belonging to emerging countries have
become more dependent on the OFDI in order to internationalize their operations.
The investing firms in developing countries are also considered to be a major factor
that has an impact on the internationalization plans of the firms (Alexander and Joe
2019).
Answer to Question 2
Joint venture is considered to be a solution that can be applied by the organizations in
order to start the international operations in a different country along with another company.
Joint venture is not similar to a partnership agreement as it has a definite end and is based on the
agreement or contract that is formed between the companies. The implementation of joint
ventures can however provide major advantages and disadvantages to the firms that are a part of
the developed agreement (Adeola, Boso and Adeniji 2018).
Advantages of a joint venture –
3EXAM QUESTIONS AND ANSWERS
Expertise and new insights – The formation of a joint venture can provide new
expertise and insights to the organizations. The market becomes much easier with
the help of agreements that have been developed between two countries.
Better resources – The development of a joint venture will provide access to the
better resources and the specialized technology and staff as well.
Joint ventures are temporary – The joint ventures are temporary agreements that
are formed between two organizations and the commitment is not considered to
be long term in nature (Arregle et al. 2017).
Costs and risks are shared by both parties – In case of the failure of joint venture
that losses and costs are shared by both the parties.
Joint ventures are flexible – Joint ventures can have limited lifespan and they are
able to cover only fraction of the activities that are performed by the
organizations.
There are many ways to exit the joint venture – Joint ventures are able to provide
different options to the organizations so that they are able to escape the non-core
business operations.
The organizations have knowledge related to products and services that are being
offered by them – The firms that are a part of the joint ventures have effective
levels of knowledge regarding the services and products that are being offered by
them to the customers (Arregle et al. 2018).
Relationships and networks are formed by joint ventures – Although the
partnerships are formed based on a specific goal the development of long lasting
business relationships are supported by the joint ventures.
Expertise and new insights – The formation of a joint venture can provide new
expertise and insights to the organizations. The market becomes much easier with
the help of agreements that have been developed between two countries.
Better resources – The development of a joint venture will provide access to the
better resources and the specialized technology and staff as well.
Joint ventures are temporary – The joint ventures are temporary agreements that
are formed between two organizations and the commitment is not considered to
be long term in nature (Arregle et al. 2017).
Costs and risks are shared by both parties – In case of the failure of joint venture
that losses and costs are shared by both the parties.
Joint ventures are flexible – Joint ventures can have limited lifespan and they are
able to cover only fraction of the activities that are performed by the
organizations.
There are many ways to exit the joint venture – Joint ventures are able to provide
different options to the organizations so that they are able to escape the non-core
business operations.
The organizations have knowledge related to products and services that are being
offered by them – The firms that are a part of the joint ventures have effective
levels of knowledge regarding the services and products that are being offered by
them to the customers (Arregle et al. 2018).
Relationships and networks are formed by joint ventures – Although the
partnerships are formed based on a specific goal the development of long lasting
business relationships are supported by the joint ventures.
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4EXAM QUESTIONS AND ANSWERS
The organizations that are a part of the joint ventures can save their money by
sharing the costs that are related to marketing and advertising based activities.
The risks of discrimination are eradicated with the development of joint ventures.
Disadvantages of joint ventures –
Vague objectives – The objectives that are developed as a part of the joint venture
agreement can be vague in nature and are not communicated clearly to the
individuals.
Flexibility will be restricted – The levels of flexibility in joint ventures are
considered to be quite low and the participants need to enhance their focus on the
activities that are performed as a part of the joint venture agreement (Attig et al.
2016).
The balance of expertise, investment and assets is considered to be quite low
when the joint ventures are developed.
The clash of management styles and cultures can also result in poor integration
and co-operation among the participant of the joint venture.
The outside activities of participants are restricted in a huge manner when they
work as a part of the venture project (Blackburne and Buckley 2019).
The major limitations that have to be faced by the organizations when they aim at
pursuing the global strategy with the help of joint venture are related to lack of freedom to
implement different policies. The agreements that are developed at the start of joint venture
development have to be followed by the participants and they will also need to form the
operations with respect to the contract of joint venture. The cultural differences can cause major
The organizations that are a part of the joint ventures can save their money by
sharing the costs that are related to marketing and advertising based activities.
The risks of discrimination are eradicated with the development of joint ventures.
Disadvantages of joint ventures –
Vague objectives – The objectives that are developed as a part of the joint venture
agreement can be vague in nature and are not communicated clearly to the
individuals.
Flexibility will be restricted – The levels of flexibility in joint ventures are
considered to be quite low and the participants need to enhance their focus on the
activities that are performed as a part of the joint venture agreement (Attig et al.
2016).
The balance of expertise, investment and assets is considered to be quite low
when the joint ventures are developed.
The clash of management styles and cultures can also result in poor integration
and co-operation among the participant of the joint venture.
The outside activities of participants are restricted in a huge manner when they
work as a part of the venture project (Blackburne and Buckley 2019).
The major limitations that have to be faced by the organizations when they aim at
pursuing the global strategy with the help of joint venture are related to lack of freedom to
implement different policies. The agreements that are developed at the start of joint venture
development have to be followed by the participants and they will also need to form the
operations with respect to the contract of joint venture. The cultural differences can cause major
5EXAM QUESTIONS AND ANSWERS
problems for organizations which aim at pursuing their global strategy with the implementation
of joint venture (Beugelsdijk et al. 2018).
Answer to Question 3
The field related to mergers and acquisitions has been able to attract different disciplines
that are explored as a part of management literature. The overseas acquisitions in developing
countries have also become highly important for the purpose of proper completion of research
that is related to the factors that have an impact on the process of mergers and acquisitions.
Mergers and acquisitions have been described as the most aggressive method of entering the
foreign markets and it mainly involves two organizations from two different countries. In the
context of international management acquisitions have been defined as the process which
involves an acquirer firm and a target organization which are headquartered in two different
countries (Blackburne and Buckley 2019). The cross border based deals are also able to play a
key part in ensuring the outward and inward transactions. The host economy receives direct
investment when the local firm is mainly acquired by a foreign MNC and this is referred to as the
cross border inward acquisition. Internationalization is considered to be a process which helps in
increasing the levels of involvement in the foreign markets.
The firm and industry specific factors have an impact on the overseas negotiations that
are made as a part of the merger and acquisition process. The firms that acquire US based
organizations have better levels of liquidity ratios and the targets on the other hand have low
price to earnings based ratio. The firms have been able to develop the financial advantages and
the low price-to-earnings can also participate in the outbound deals. The organizations with high
sales growth and greater intensity of advertising are able to participate in the overseas deals in
order to capture the first mover based advantages and the market share as well (Boermans and
problems for organizations which aim at pursuing their global strategy with the implementation
of joint venture (Beugelsdijk et al. 2018).
Answer to Question 3
The field related to mergers and acquisitions has been able to attract different disciplines
that are explored as a part of management literature. The overseas acquisitions in developing
countries have also become highly important for the purpose of proper completion of research
that is related to the factors that have an impact on the process of mergers and acquisitions.
Mergers and acquisitions have been described as the most aggressive method of entering the
foreign markets and it mainly involves two organizations from two different countries. In the
context of international management acquisitions have been defined as the process which
involves an acquirer firm and a target organization which are headquartered in two different
countries (Blackburne and Buckley 2019). The cross border based deals are also able to play a
key part in ensuring the outward and inward transactions. The host economy receives direct
investment when the local firm is mainly acquired by a foreign MNC and this is referred to as the
cross border inward acquisition. Internationalization is considered to be a process which helps in
increasing the levels of involvement in the foreign markets.
The firm and industry specific factors have an impact on the overseas negotiations that
are made as a part of the merger and acquisition process. The firms that acquire US based
organizations have better levels of liquidity ratios and the targets on the other hand have low
price to earnings based ratio. The firms have been able to develop the financial advantages and
the low price-to-earnings can also participate in the outbound deals. The organizations with high
sales growth and greater intensity of advertising are able to participate in the overseas deals in
order to capture the first mover based advantages and the market share as well (Boermans and
6EXAM QUESTIONS AND ANSWERS
Roelfsema 2016). The direct international investments that have been made in around 21
developed countries by the Japanese firms are taken into consideration for the purpose of
understanding the impact of firm specific factors on the mergers and acquisitions. The firms that
have higher productivity levels have mainly chosen FDI rather than the export strategy of
acquisition. The firm specific attributes are thereby able to influence the mergers and
acquisitions in a huge manner. The global mergers and acquisitions are influenced in a huge
manner by the industry shocks or booms and the changes in technologies as well (Calabrò et al.
2017). The example of telecommunications sector can be taken for the purpose of understanding
the impact of industry shocks or booms on the merger and acquisition process.
Telecommunications is considered to be an emergent industry and it is able to provide huge
business opportunities to the organizations. The mergers and acquisitions in the
telecommunications industry will thereby be based on the huge number of growth opportunities
that are offered to the organizations.
Answer to Question 4
The internationalization of the R&D activities is influenced by different factors at various
levels. The major actors are the organizations that aim at internationalize R&D at different
foreign locations for various reasons. The availability of skilled workforce is considered to be
another major reason behind the internationalization of R&D activities of the firms (Boermans
and Roelfsema 2016).
Benefits of R&D internationalization – The vast levels of global opportunities can be
explored by the firms with the help of proper R&D internationalization process. The
organizations belonging to emerging countries aim at internationalizing the R&D process to the
developed countries in order to use the advanced technologies. On other hand, the major benefits
Roelfsema 2016). The direct international investments that have been made in around 21
developed countries by the Japanese firms are taken into consideration for the purpose of
understanding the impact of firm specific factors on the mergers and acquisitions. The firms that
have higher productivity levels have mainly chosen FDI rather than the export strategy of
acquisition. The firm specific attributes are thereby able to influence the mergers and
acquisitions in a huge manner. The global mergers and acquisitions are influenced in a huge
manner by the industry shocks or booms and the changes in technologies as well (Calabrò et al.
2017). The example of telecommunications sector can be taken for the purpose of understanding
the impact of industry shocks or booms on the merger and acquisition process.
Telecommunications is considered to be an emergent industry and it is able to provide huge
business opportunities to the organizations. The mergers and acquisitions in the
telecommunications industry will thereby be based on the huge number of growth opportunities
that are offered to the organizations.
Answer to Question 4
The internationalization of the R&D activities is influenced by different factors at various
levels. The major actors are the organizations that aim at internationalize R&D at different
foreign locations for various reasons. The availability of skilled workforce is considered to be
another major reason behind the internationalization of R&D activities of the firms (Boermans
and Roelfsema 2016).
Benefits of R&D internationalization – The vast levels of global opportunities can be
explored by the firms with the help of proper R&D internationalization process. The
organizations belonging to emerging countries aim at internationalizing the R&D process to the
developed countries in order to use the advanced technologies. On other hand, the major benefits
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7EXAM QUESTIONS AND ANSWERS
that are provided to the firms belonging to developed countries when they internationalize their
R&D activities in the emerging countries are related to lower production costs. The emerging
economy based firms are also able to gain a competitive benefit in the industry with the support
that is provided by technological resources in the developed countries (Conconi, Sapir and
Zanardi 2016). Knowledge transfer is considered to be a major benefit that is provided to the
organizations when they wish to internationalize their operations.
Costs of R&D internationalization – The internationalization of R&D activities can have
a negative impact on the costs related to production of organizations. The levels of competition
that are faced by companies in the process of establishing their R&D activities in a different
country are also considered a negative aspect. The patent and copyright related issues that are
faced by the organizations in different parts of the world based on internationalization of R&D
activities have an impact on the costs related to the operations (Dodgson 2018).
The Western multinational firms have started establishing R&D centers in different
countries that have weak protection of the intellectual property rights. The intellectual property
rights can provide a major issue in appropriate development of the R&D facilities of
organizations. The countries which have weak protection of intellectual property rights will be
able to offer major growth opportunities to the organizations that start the R&D operations. The
countries with stronger protection of property rights can lead to higher costs of the operations of
different organizations. The development of R&D facilities of the organizations will be easier in
the countries that have weaker protection of the intellectual property (Conconi, Sapir and Zanardi
2016).
Answer to Question 5
that are provided to the firms belonging to developed countries when they internationalize their
R&D activities in the emerging countries are related to lower production costs. The emerging
economy based firms are also able to gain a competitive benefit in the industry with the support
that is provided by technological resources in the developed countries (Conconi, Sapir and
Zanardi 2016). Knowledge transfer is considered to be a major benefit that is provided to the
organizations when they wish to internationalize their operations.
Costs of R&D internationalization – The internationalization of R&D activities can have
a negative impact on the costs related to production of organizations. The levels of competition
that are faced by companies in the process of establishing their R&D activities in a different
country are also considered a negative aspect. The patent and copyright related issues that are
faced by the organizations in different parts of the world based on internationalization of R&D
activities have an impact on the costs related to the operations (Dodgson 2018).
The Western multinational firms have started establishing R&D centers in different
countries that have weak protection of the intellectual property rights. The intellectual property
rights can provide a major issue in appropriate development of the R&D facilities of
organizations. The countries which have weak protection of intellectual property rights will be
able to offer major growth opportunities to the organizations that start the R&D operations. The
countries with stronger protection of property rights can lead to higher costs of the operations of
different organizations. The development of R&D facilities of the organizations will be easier in
the countries that have weaker protection of the intellectual property (Conconi, Sapir and Zanardi
2016).
Answer to Question 5
8EXAM QUESTIONS AND ANSWERS
Transnational strategy is mainly implemented by organizations when they aim at
expanding their operations to the foreign countries. However, the transnational strategies are
considered to be quite different from multinational strategies that are implemented by the firms.
Different aspects that can lead to the differences between transnational strategy and multinational
strategy mainly include office culture, decision making and the marketing strategy (Dodgson
2018). The advantages and disadvantage of transnational strategy can be explained as follows,
Advantages of Transnational strategy –
Expanding the business operations – The major advantage or benefit that is
provided by transnational strategy is the expansion of business operations and
enhancing the reach of an organization as well. The increase in levels of profits is
also able to generate higher revenues for the organization.
Saving of the expenses – The decentralization of business operations is major
advantage provided by implementation of transnational strategies. The cheap raw
material and labor are also a result of the proper implementation of transnational
strategy (Grøgaard, Rygh and Benito 2019).
Implementing the good things from other countries – The quality of products is
improved in an effective way with the support that is provided by the expansion
of business operations in a different country. The firm can adopt transnational
strategy in order to implement the culture of different countries as well.
Disadvantages of transnational strategy –
Lack of proper understanding – A major disadvantage of transnational strategy is
that the organization is not able to develop a full understanding of markets in
Transnational strategy is mainly implemented by organizations when they aim at
expanding their operations to the foreign countries. However, the transnational strategies are
considered to be quite different from multinational strategies that are implemented by the firms.
Different aspects that can lead to the differences between transnational strategy and multinational
strategy mainly include office culture, decision making and the marketing strategy (Dodgson
2018). The advantages and disadvantage of transnational strategy can be explained as follows,
Advantages of Transnational strategy –
Expanding the business operations – The major advantage or benefit that is
provided by transnational strategy is the expansion of business operations and
enhancing the reach of an organization as well. The increase in levels of profits is
also able to generate higher revenues for the organization.
Saving of the expenses – The decentralization of business operations is major
advantage provided by implementation of transnational strategies. The cheap raw
material and labor are also a result of the proper implementation of transnational
strategy (Grøgaard, Rygh and Benito 2019).
Implementing the good things from other countries – The quality of products is
improved in an effective way with the support that is provided by the expansion
of business operations in a different country. The firm can adopt transnational
strategy in order to implement the culture of different countries as well.
Disadvantages of transnational strategy –
Lack of proper understanding – A major disadvantage of transnational strategy is
that the organization is not able to develop a full understanding of markets in
9EXAM QUESTIONS AND ANSWERS
which it wishes to continue its operations. For example, an organization that is
based in USA does not have full understanding of the local markets in countries
like China and India.
Legal, political, operational risk – The firm is exposed to different types of legal,
operational and political risks that are mainly associated with their operations in a
different country. The size of the organization needs to be big enough so that it is
able to handle the risks that are faced due to operations in a completely different
market (Grünig and Morschett 2017).
Risk of the loss of control – The firm can also lose control over business
operations in a new country or market after the implementation of transnational
strategy. Decision making process of organizations in a new country is not
centralized in nature and this is able to reduce the control that the management
has on the operations.
The transnational strategies are different from multinational strategies in many different
ways that will be discussed further. Multinational firms operate with the help of a centralized
management system and in case of the implementation of transnational strategies the
management system is decentralized in nature. Multinational strategies are implemented by firms
in order form the subsidiaries in a different country. The transnational strategies on other hand do
not have subsidiaries in the new countries or market areas. The differences in transnational
strategies from the different other types of strategies can have an influence on the operations and
profitability that is gained by a company (Hilmersson and Johanson 2016).
The decentralized decision making process is mainly implemented in the organizations
that implement transnational strategies. The decentralized organizational structure can thereby be
which it wishes to continue its operations. For example, an organization that is
based in USA does not have full understanding of the local markets in countries
like China and India.
Legal, political, operational risk – The firm is exposed to different types of legal,
operational and political risks that are mainly associated with their operations in a
different country. The size of the organization needs to be big enough so that it is
able to handle the risks that are faced due to operations in a completely different
market (Grünig and Morschett 2017).
Risk of the loss of control – The firm can also lose control over business
operations in a new country or market after the implementation of transnational
strategy. Decision making process of organizations in a new country is not
centralized in nature and this is able to reduce the control that the management
has on the operations.
The transnational strategies are different from multinational strategies in many different
ways that will be discussed further. Multinational firms operate with the help of a centralized
management system and in case of the implementation of transnational strategies the
management system is decentralized in nature. Multinational strategies are implemented by firms
in order form the subsidiaries in a different country. The transnational strategies on other hand do
not have subsidiaries in the new countries or market areas. The differences in transnational
strategies from the different other types of strategies can have an influence on the operations and
profitability that is gained by a company (Hilmersson and Johanson 2016).
The decentralized decision making process is mainly implemented in the organizations
that implement transnational strategies. The decentralized organizational structure can thereby be
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10EXAM QUESTIONS AND ANSWERS
used by the organizations that use transnational strategies to start their operations in a different
country or market area. The decision making process will thereby be based on the opinions that
are provided by employees who are a part of the organizational processes in the domestic and
international areas as well (Hofer and Baba 2018).
Answer to Question 6
(A) The ownership advantages are mainly based on the competitive advantage that
organizations aim at developing with the help of foreign direct investment or FDI.
Greater competitive advantage of the organization of different investing firms can
thereby lead to higher levels of foreign production. The organizations that have been
able to gain ownership advantage can implement the internationalization process
easily. The ownership advantages have been able to provide major resources to the
organizations based on proper usage of FDI. The firms that have gained ownership
advantage are able to implement their internationalization based strategies in an
effective manner (Grünig and Morschett 2017). The strategic resources can also be
used by these organizations and they can develop their unique position in the market
as well. The firms with ownership advantage are able to maintain their position in the
industry and can also gain FDIs in order to maintain the internationalization activities.
The internationalization theory of different multinational firms mainly propose that
the direct international investment can mainly take place when the organization has
been able to gain the intangible assets after starting their overseas operations
(Hollender, Zapkau and Schwens 2017).
(B) China has started emerging as one of the major source of the outward FDI and the
OFDI based activities of the countries have started gaining huge levels of momentum
used by the organizations that use transnational strategies to start their operations in a different
country or market area. The decision making process will thereby be based on the opinions that
are provided by employees who are a part of the organizational processes in the domestic and
international areas as well (Hofer and Baba 2018).
Answer to Question 6
(A) The ownership advantages are mainly based on the competitive advantage that
organizations aim at developing with the help of foreign direct investment or FDI.
Greater competitive advantage of the organization of different investing firms can
thereby lead to higher levels of foreign production. The organizations that have been
able to gain ownership advantage can implement the internationalization process
easily. The ownership advantages have been able to provide major resources to the
organizations based on proper usage of FDI. The firms that have gained ownership
advantage are able to implement their internationalization based strategies in an
effective manner (Grünig and Morschett 2017). The strategic resources can also be
used by these organizations and they can develop their unique position in the market
as well. The firms with ownership advantage are able to maintain their position in the
industry and can also gain FDIs in order to maintain the internationalization activities.
The internationalization theory of different multinational firms mainly propose that
the direct international investment can mainly take place when the organization has
been able to gain the intangible assets after starting their overseas operations
(Hollender, Zapkau and Schwens 2017).
(B) China has started emerging as one of the major source of the outward FDI and the
OFDI based activities of the countries have started gaining huge levels of momentum
11EXAM QUESTIONS AND ANSWERS
in the last few years. China has also become the eighth biggest supplier of FDIs in the
world and also the largest investor among different emerging economies. The rapid
growth that is depicted by the outward FDI of China is mainly supported by holdings
of different foreign exchange reserves and determination of the Chinese authorities
that is mainly related to proper diversification of the foreign exchange reserves
holdings. The
Chinese firms have also been able to accumulate huge amounts of knowledge related
to successful operations of the multinational organizations in different parts of the
world (Grünig and Morschett 2017). The growth of outward FDI or OFDI in China
has been able to provide major challenges to different researchers. The major
determinants of the increase in OFDI in China are mainly related to carrying out the
overseas based investment activities. The outward FDIs of Chinese firms are
considered to be quite different from the Western organizations based on the
competitive advantage that is gained in the market. The characteristics of Chinese
outward FDI can be analyzed with the help of three different perspectives that include
resource based perspective, industry based view and institution based view (Jalal
2018). From the resource based view it can be explained that the firm needs to
develop an effective ownership advantage over different foreign firms. The Chinese
firms on the other hand make investments in order to redress the competitive
disadvantages instead of exploiting the competitive advantages. Outward FDI that is
implemented by the Chinese organizations is thereby considered to be unconventional
by the researchers in different parts of the world. The difference of Chinese outward
FDI in comparison to outward FDI is mainly based on the types of asset firms that
in the last few years. China has also become the eighth biggest supplier of FDIs in the
world and also the largest investor among different emerging economies. The rapid
growth that is depicted by the outward FDI of China is mainly supported by holdings
of different foreign exchange reserves and determination of the Chinese authorities
that is mainly related to proper diversification of the foreign exchange reserves
holdings. The
Chinese firms have also been able to accumulate huge amounts of knowledge related
to successful operations of the multinational organizations in different parts of the
world (Grünig and Morschett 2017). The growth of outward FDI or OFDI in China
has been able to provide major challenges to different researchers. The major
determinants of the increase in OFDI in China are mainly related to carrying out the
overseas based investment activities. The outward FDIs of Chinese firms are
considered to be quite different from the Western organizations based on the
competitive advantage that is gained in the market. The characteristics of Chinese
outward FDI can be analyzed with the help of three different perspectives that include
resource based perspective, industry based view and institution based view (Jalal
2018). From the resource based view it can be explained that the firm needs to
develop an effective ownership advantage over different foreign firms. The Chinese
firms on the other hand make investments in order to redress the competitive
disadvantages instead of exploiting the competitive advantages. Outward FDI that is
implemented by the Chinese organizations is thereby considered to be unconventional
by the researchers in different parts of the world. The difference of Chinese outward
FDI in comparison to outward FDI is mainly based on the types of asset firms that
12EXAM QUESTIONS AND ANSWERS
aim at starting their operations in new country or market area (Knight and Liesch
2016).
Answer to Question 7
The choice of foreign market entry mode is considered to be a major aspect of the
strategic management and international business research as well. The institutional perspective
can be taken into consideration for the purpose of understanding the reasons behind the choice of
a particular market entry mode by an organization. The choice based on organizational structure
is considered to be a response that is provided by the organizations related to the pressures of the
external environment. The external environment pressures are able to influence the decisions that
are made by the organizations based on their choice of an international market entry mode. The
perspective of transaction-cost can also be considered for the purpose of selecting the foreign
entry-mode of different organizations (Jalal 2018).
The implications of transaction costs on the choice of foreign entry mode can be
influenced due to the presence of high levels of uncertainty. The opportunistic behavior that is
depicted by the transacting parties can have an impact on the behavioral uncertainties. The
external environment or institutional environment are able to influence the practices and
structures that are implemented by the firms. Different factors can however give rise to the
isomorphic pressures that are a part of the industry. The organizations aim at choosing a market
entry mode that can provide effective levels of legitimacy in the new country or market area
(Kraus et al. 2016).
The decisions that are made by organizations regarding the choice of market entry modes
between equity joint ventures and wholly owned subsidiaries are mainly based on the country
aim at starting their operations in new country or market area (Knight and Liesch
2016).
Answer to Question 7
The choice of foreign market entry mode is considered to be a major aspect of the
strategic management and international business research as well. The institutional perspective
can be taken into consideration for the purpose of understanding the reasons behind the choice of
a particular market entry mode by an organization. The choice based on organizational structure
is considered to be a response that is provided by the organizations related to the pressures of the
external environment. The external environment pressures are able to influence the decisions that
are made by the organizations based on their choice of an international market entry mode. The
perspective of transaction-cost can also be considered for the purpose of selecting the foreign
entry-mode of different organizations (Jalal 2018).
The implications of transaction costs on the choice of foreign entry mode can be
influenced due to the presence of high levels of uncertainty. The opportunistic behavior that is
depicted by the transacting parties can have an impact on the behavioral uncertainties. The
external environment or institutional environment are able to influence the practices and
structures that are implemented by the firms. Different factors can however give rise to the
isomorphic pressures that are a part of the industry. The organizations aim at choosing a market
entry mode that can provide effective levels of legitimacy in the new country or market area
(Kraus et al. 2016).
The decisions that are made by organizations regarding the choice of market entry modes
between equity joint ventures and wholly owned subsidiaries are mainly based on the country
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13EXAM QUESTIONS AND ANSWERS
specific factors. The government policies have a major influence on the market entry based
decisions that are made by the organizations. The infrastructure which is available in the host
country can lead to the development of joint ventures or wholly owned subsidiaries. The systems
related to property rights that are formed in the host countries can also influence the decision
making process of the firms. The decision related market entry mode can have a major impact on
the operations and levels of profitability that are gained by the organizations in the new country
or market area (Kreiter and Helm 2018).
The implementation of equity joint ventures by the organizations can lead to different
disadvantages or limitations that can be faced in the new market area. The limitations faced by
organizations in a different country are as follows,
The equity joint ventures are considered to be quite fragile in nature and lead to
major clashes in the corporate cultures of organizations. The operational and
control based decisions that are made by the organizations which are a part of the
joint venture agreement will be based on the terms and conditions that have been
set.
The development of a proper balance among the organizations is considered to be
quite difficult and can cause major damage to the reputation and brand image of
the firms as well. The high levels of control that are imposed on organizations can
also cause major issues for them (Lojacono, Misani and Tallman 2017).
Answer to Question 8
Strategic alliances and partnerships have started gaining huge levels of importance and
have also become a cornerstone of the different corporate strategies. However, the failure rates of
specific factors. The government policies have a major influence on the market entry based
decisions that are made by the organizations. The infrastructure which is available in the host
country can lead to the development of joint ventures or wholly owned subsidiaries. The systems
related to property rights that are formed in the host countries can also influence the decision
making process of the firms. The decision related market entry mode can have a major impact on
the operations and levels of profitability that are gained by the organizations in the new country
or market area (Kreiter and Helm 2018).
The implementation of equity joint ventures by the organizations can lead to different
disadvantages or limitations that can be faced in the new market area. The limitations faced by
organizations in a different country are as follows,
The equity joint ventures are considered to be quite fragile in nature and lead to
major clashes in the corporate cultures of organizations. The operational and
control based decisions that are made by the organizations which are a part of the
joint venture agreement will be based on the terms and conditions that have been
set.
The development of a proper balance among the organizations is considered to be
quite difficult and can cause major damage to the reputation and brand image of
the firms as well. The high levels of control that are imposed on organizations can
also cause major issues for them (Lojacono, Misani and Tallman 2017).
Answer to Question 8
Strategic alliances and partnerships have started gaining huge levels of importance and
have also become a cornerstone of the different corporate strategies. However, the failure rates of
14EXAM QUESTIONS AND ANSWERS
strategic alliances are also considered to be quite high. The selection of a right partner is
considered to be a crucial task that is a part of the formation of strategic alliances or partnerships.
The legalities are also able to play a key part in developing the governances of two partner
organizations that have formed the strategic alliances. The process of partner selection for
development of strategic alliances or partnerships is thereby able to play a key part in gaining
success in the industry (Kreiter and Helm 2018). The different steps that are a part of partner
selection activities of the organization are as follows,
1) Development of the partner selection team.
2) Identification of the partnering needs of the company.
3) Identification of the partnership opportunities in the market.
4) Defining the objectives of the company related to proper alliance.
5) Defining the partner selection criteria.
6) Creating the long list of prospective partners.
7) Orientation meetings with the prospective partners.
8) Determining the short list of the prospective partners.
9) Screening of the shortlisted partners based on the defined partnering criteria.
10) Inviting the partners so that they are able to provide their idea related to the
alliance.
11) Ranking of the prospects.
12) Final choice of the partners.
13) Negotiation of the alliance with prospective partners.
14) Organizing the social events with various selected partners.
15) Writing the legal agreements.
strategic alliances are also considered to be quite high. The selection of a right partner is
considered to be a crucial task that is a part of the formation of strategic alliances or partnerships.
The legalities are also able to play a key part in developing the governances of two partner
organizations that have formed the strategic alliances. The process of partner selection for
development of strategic alliances or partnerships is thereby able to play a key part in gaining
success in the industry (Kreiter and Helm 2018). The different steps that are a part of partner
selection activities of the organization are as follows,
1) Development of the partner selection team.
2) Identification of the partnering needs of the company.
3) Identification of the partnership opportunities in the market.
4) Defining the objectives of the company related to proper alliance.
5) Defining the partner selection criteria.
6) Creating the long list of prospective partners.
7) Orientation meetings with the prospective partners.
8) Determining the short list of the prospective partners.
9) Screening of the shortlisted partners based on the defined partnering criteria.
10) Inviting the partners so that they are able to provide their idea related to the
alliance.
11) Ranking of the prospects.
12) Final choice of the partners.
13) Negotiation of the alliance with prospective partners.
14) Organizing the social events with various selected partners.
15) Writing the legal agreements.
15EXAM QUESTIONS AND ANSWERS
16) Joint writing of business plans (Markman et al. 2019).
The strategic alliances have become highly important for the large organizations and the
firms thereby need to develop cooperative arrangements for the purpose of achieving different
strategic objectives. Partner opportunism is mainly related to the distorted or incomplete
disclosure of information in order to confuse the other partner. The example of Cameron Auto
Parts, a North American organization and its UK licensee can be taken into consideration for the
purpose of understanding the concept of partner opportunism. Cameron Auto Parts had
committed an opportunist act by making agreements with its French partner without providing
the information to its UK based licensee (Monaghan, Tippmann and Coviello 2020).
The major factors that can lead to partner opportunism mainly include uncertainty in
decision making process, economic ethnocentrism and cultural distance. The structure of
partnership agreements can however play a major role in reduction of the chances of partner
opportunism. The equity based alliances are considered to be more effective to reduce partner
opportunism in comparison to the non-equity based alliances between the different partners
(Mukundhan and Nandakumar 2016).
Answer to Question 9
Global expansion is considered to be a logical step for the organizations that have been
successful in their home countries. The organizations that pursue the global markets are mainly
enabled by the technologies and driven by the costs. The companies in this case aim at
monetizing the global economy and they are not dependent on a single market in order to survive
at the time of market volatility. The companies can face many advantages as well disadvantages
16) Joint writing of business plans (Markman et al. 2019).
The strategic alliances have become highly important for the large organizations and the
firms thereby need to develop cooperative arrangements for the purpose of achieving different
strategic objectives. Partner opportunism is mainly related to the distorted or incomplete
disclosure of information in order to confuse the other partner. The example of Cameron Auto
Parts, a North American organization and its UK licensee can be taken into consideration for the
purpose of understanding the concept of partner opportunism. Cameron Auto Parts had
committed an opportunist act by making agreements with its French partner without providing
the information to its UK based licensee (Monaghan, Tippmann and Coviello 2020).
The major factors that can lead to partner opportunism mainly include uncertainty in
decision making process, economic ethnocentrism and cultural distance. The structure of
partnership agreements can however play a major role in reduction of the chances of partner
opportunism. The equity based alliances are considered to be more effective to reduce partner
opportunism in comparison to the non-equity based alliances between the different partners
(Mukundhan and Nandakumar 2016).
Answer to Question 9
Global expansion is considered to be a logical step for the organizations that have been
successful in their home countries. The organizations that pursue the global markets are mainly
enabled by the technologies and driven by the costs. The companies in this case aim at
monetizing the global economy and they are not dependent on a single market in order to survive
at the time of market volatility. The companies can face many advantages as well disadvantages
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16EXAM QUESTIONS AND ANSWERS
in providing the products that are globally standardized in nature (Monaghan, Tippmann and
Coviello 2020).
Advantages of globally standardized products –
The organizations that provide globally standardized products can operate in the
new markets and can also gain higher revenues.
The faster Go-To-Market strategy can be used by the organization in order to
reach the higher levels of market penetration.
For example, Nestle used SAP which is an enterprise software for the purpose of
enhancing the levels of global efficiency.
Nestle had been able to recognize that the balance between local flexibility with
the global efficiency has been an important part of the success gained by the
organization (Mukundhan and Nandakumar 2016).
The process of global standardization can be efficient and reliable for the
organization also less expensive for the customers as well.
The proper intensification of mobility of consumers is considered to be a major
advantage of global standardization.
The attainable of the scale of the experience economies can provide major
competitive advantages that aim at providing globally standardized products to
the customers in different countries.
The rise of technological feasibility levels is related to the standardization of
products that are manufactured by different organizations (Murphy 2018).
The organizations are able to adapt their operations with the levels of diversity
that are a part of different countries in which they can offer the products.
in providing the products that are globally standardized in nature (Monaghan, Tippmann and
Coviello 2020).
Advantages of globally standardized products –
The organizations that provide globally standardized products can operate in the
new markets and can also gain higher revenues.
The faster Go-To-Market strategy can be used by the organization in order to
reach the higher levels of market penetration.
For example, Nestle used SAP which is an enterprise software for the purpose of
enhancing the levels of global efficiency.
Nestle had been able to recognize that the balance between local flexibility with
the global efficiency has been an important part of the success gained by the
organization (Mukundhan and Nandakumar 2016).
The process of global standardization can be efficient and reliable for the
organization also less expensive for the customers as well.
The proper intensification of mobility of consumers is considered to be a major
advantage of global standardization.
The attainable of the scale of the experience economies can provide major
competitive advantages that aim at providing globally standardized products to
the customers in different countries.
The rise of technological feasibility levels is related to the standardization of
products that are manufactured by different organizations (Murphy 2018).
The organizations are able to adapt their operations with the levels of diversity
that are a part of different countries in which they can offer the products.
17EXAM QUESTIONS AND ANSWERS
Disadvantages of globally standardized products –
The standardization process is not considered to be feasible for different aspects
that include advertising, customer services and distribution and product pricing
that are driven by the conditions of local market.
For example, the products that are offered by the organizations in Asian countries
are based on the local conditions in which green means proper balance.
The better levels of marketing and planning can play a key part in development of
standardization of the products (Prange 2016).
Functional organizational structure can be implemented by the organizations that aim at
providing standardized products to the customers in different countries. The company will be
able to organize the workers with respect to their knowledge and skills. The different
departments of the organizations will be taken into consideration for the purpose of assigning
different jobs to the employees. The departments that can be considered as the most important
part of the operations of the organizations include customer services. The local needs and
demands will also be able to influence the ways by which standardized products will be offered
to the customers (Qiu and Homer 2018).
Answer to Question 10
(A) The ownership structures of the firms are considered to be quite different in case
of joint ventures in comparison to the wholly owned subsidiaries. In case of joint
ventures the ownership is in the hands of two partners and in case of wholly
owned subsidiaries the concerned organization has entire ownership of the
operations. The costs of production are considered to be quite low in case of the
Disadvantages of globally standardized products –
The standardization process is not considered to be feasible for different aspects
that include advertising, customer services and distribution and product pricing
that are driven by the conditions of local market.
For example, the products that are offered by the organizations in Asian countries
are based on the local conditions in which green means proper balance.
The better levels of marketing and planning can play a key part in development of
standardization of the products (Prange 2016).
Functional organizational structure can be implemented by the organizations that aim at
providing standardized products to the customers in different countries. The company will be
able to organize the workers with respect to their knowledge and skills. The different
departments of the organizations will be taken into consideration for the purpose of assigning
different jobs to the employees. The departments that can be considered as the most important
part of the operations of the organizations include customer services. The local needs and
demands will also be able to influence the ways by which standardized products will be offered
to the customers (Qiu and Homer 2018).
Answer to Question 10
(A) The ownership structures of the firms are considered to be quite different in case
of joint ventures in comparison to the wholly owned subsidiaries. In case of joint
ventures the ownership is in the hands of two partners and in case of wholly
owned subsidiaries the concerned organization has entire ownership of the
operations. The costs of production are considered to be quite low in case of the
18EXAM QUESTIONS AND ANSWERS
joint ventures in comparison to wholly owned subsidiaries. The partner
organizations that are a part of the joint ventures can gain access to the different
distribution networks and markets with the help of agreements that are developed
by them (Shen, Puig and Paul 2017). The access to different technologies can also
be gained easily by organizations with the proper development of the joint venture
agreements. On the other hand, the requirement of capital in formation of wholly
owned subsidiaries is considered to be quite high in comparison to the
investments that are made as a part of the joint venture development. Joint
ventures are considered to be temporary in nature and the risk levels are also quite
low. Wholly owned subsidiaries can be formed by development of the facilities of
the organizations in host countries. This investment cannot be considered to be
temporary in nature. The costs and risks of a joint venture are shared between the
partners who are a part of the agreement (Stoian, Rialp and Dimitratos 2017).
(B) The organizations that aim at entering a new market area or country can thereby
select equity joint ventures if the levels of investments are low. The companies
can also aim at starting the operations in foreign markets with the help of joint
venture agreements that are flexible in nature. The flexibility levels and low risks
of equity joint ventures can play a key part in decisions that are made by
organizations that wish to enter a new country. An organization that wishes to
enter an entirely different market or country can aim at the expanding the
operations with the development of equity joint venture agreement (Tsang 2018).
On the other hand, the development of wholly owned subsidiaries by the
organization will require higher levels of investments. The risk levels in formation
joint ventures in comparison to wholly owned subsidiaries. The partner
organizations that are a part of the joint ventures can gain access to the different
distribution networks and markets with the help of agreements that are developed
by them (Shen, Puig and Paul 2017). The access to different technologies can also
be gained easily by organizations with the proper development of the joint venture
agreements. On the other hand, the requirement of capital in formation of wholly
owned subsidiaries is considered to be quite high in comparison to the
investments that are made as a part of the joint venture development. Joint
ventures are considered to be temporary in nature and the risk levels are also quite
low. Wholly owned subsidiaries can be formed by development of the facilities of
the organizations in host countries. This investment cannot be considered to be
temporary in nature. The costs and risks of a joint venture are shared between the
partners who are a part of the agreement (Stoian, Rialp and Dimitratos 2017).
(B) The organizations that aim at entering a new market area or country can thereby
select equity joint ventures if the levels of investments are low. The companies
can also aim at starting the operations in foreign markets with the help of joint
venture agreements that are flexible in nature. The flexibility levels and low risks
of equity joint ventures can play a key part in decisions that are made by
organizations that wish to enter a new country. An organization that wishes to
enter an entirely different market or country can aim at the expanding the
operations with the development of equity joint venture agreement (Tsang 2018).
On the other hand, the development of wholly owned subsidiaries by the
organization will require higher levels of investments. The risk levels in formation
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19EXAM QUESTIONS AND ANSWERS
of wholly owned subsidiaries in this case are also considered to be quite high. The
small organizations can aim at expanding the operations with the implementation
of equity joint venture agreement (Stoian, Rialp and Dimitratos 2017).
Answer to Question 11
International business mainly refers to the different commercial activities that include
trading of the goods, technology, knowledge, capital and services across the national borders.
The cross border based transactions that have taken place between the organizations and
individuals in different countries. The production based activities of different organizations are
influenced in a huge manner by the political factors or changes that can take place. The changes
in tax rates, actions of the government, regulations based on foreign trade and political stability
of the countries can have an impact on the production and different other activities of
organizations. The lack of proper political stability in a country can influence the tax based
policies and the government initiatives that are implemented (Vahlne and Johanson 2017).
The economic factors and economic system of the countries in which the organizations
aim at operating can have an impact on the interest rates, income distribution levels, employment
levels and the allocation of government budget as well. The purchasing power of customers can
also play a major role in determining the production process of the organizations and the
revenues that are earned as well. The technological environment of the new countries can
influence the production based decisions that are made by various organizations. The
organizations can thereby aim at using the available technologies in order to maintain the levels
of productivity and also to improve the product quality (Verbeke et al. 2019).
of wholly owned subsidiaries in this case are also considered to be quite high. The
small organizations can aim at expanding the operations with the implementation
of equity joint venture agreement (Stoian, Rialp and Dimitratos 2017).
Answer to Question 11
International business mainly refers to the different commercial activities that include
trading of the goods, technology, knowledge, capital and services across the national borders.
The cross border based transactions that have taken place between the organizations and
individuals in different countries. The production based activities of different organizations are
influenced in a huge manner by the political factors or changes that can take place. The changes
in tax rates, actions of the government, regulations based on foreign trade and political stability
of the countries can have an impact on the production and different other activities of
organizations. The lack of proper political stability in a country can influence the tax based
policies and the government initiatives that are implemented (Vahlne and Johanson 2017).
The economic factors and economic system of the countries in which the organizations
aim at operating can have an impact on the interest rates, income distribution levels, employment
levels and the allocation of government budget as well. The purchasing power of customers can
also play a major role in determining the production process of the organizations and the
revenues that are earned as well. The technological environment of the new countries can
influence the production based decisions that are made by various organizations. The
organizations can thereby aim at using the available technologies in order to maintain the levels
of productivity and also to improve the product quality (Verbeke et al. 2019).
20EXAM QUESTIONS AND ANSWERS
The automation of work processes is also based on the ways by which technologies are
used by the organizations. The different services and products that are a part of the industry will
be affected in a huge manner by the proper implementation of production process. The
implementation of modern technologies will also be able to play a key part in enhancing the
products that are offered by the new countries. The levels of competition faced by organizations
will also be mitigated in an effective way with the support that is provided by different modern
technologies. The product specific factors that can have an impact on the production related
decisions of the organizations are related to the quality of products that will be offered to the
consumers (Yan and Liu 2017). The country specific factors on the other hand can have a major
impact on the production based processes. The social aspects or factors can also influence the
ways by which production processes of the international organizations can be developed. On
other hand, the environment of different countries can also play a key role in appropriate
management of the operations of various organizations. The production processes will also be
developed with respect to the impact that they have on the environment (Yoboue, Yi and Antwi
2017).
The environmental footprint of production and manufacture processes will be taken into
consideration for the purpose of starting the organizational operations in an entirely different
country. The requirement for proper development of the products can also play a major role in
production processes that are formed by the international organizations that operate in different
countries. The value that is created by organizations in various countries is also based on the
production and manufacturing processes that are implemented by the firms. The international
production decisions of firms will thereby be influenced in a huge manner by the country
The automation of work processes is also based on the ways by which technologies are
used by the organizations. The different services and products that are a part of the industry will
be affected in a huge manner by the proper implementation of production process. The
implementation of modern technologies will also be able to play a key part in enhancing the
products that are offered by the new countries. The levels of competition faced by organizations
will also be mitigated in an effective way with the support that is provided by different modern
technologies. The product specific factors that can have an impact on the production related
decisions of the organizations are related to the quality of products that will be offered to the
consumers (Yan and Liu 2017). The country specific factors on the other hand can have a major
impact on the production based processes. The social aspects or factors can also influence the
ways by which production processes of the international organizations can be developed. On
other hand, the environment of different countries can also play a key role in appropriate
management of the operations of various organizations. The production processes will also be
developed with respect to the impact that they have on the environment (Yoboue, Yi and Antwi
2017).
The environmental footprint of production and manufacture processes will be taken into
consideration for the purpose of starting the organizational operations in an entirely different
country. The requirement for proper development of the products can also play a major role in
production processes that are formed by the international organizations that operate in different
countries. The value that is created by organizations in various countries is also based on the
production and manufacturing processes that are implemented by the firms. The international
production decisions of firms will thereby be influenced in a huge manner by the country
21EXAM QUESTIONS AND ANSWERS
specific, technology specific and product specific factors of different countries (Yan and Liu
2017).
specific, technology specific and product specific factors of different countries (Yan and Liu
2017).
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22EXAM QUESTIONS AND ANSWERS
References
Adeola, O., Boso, N. and Adeniji, J., 2018. Bridging Institutional Distance: An Emerging Market
Entry Strategy for Multinational Enterprises. In Emerging Issues in Global Marketing (pp. 205-
230). Springer, Cham.
Ahi, A., Baronchelli, G., Kuivalainen, O. and Piantoni, M., 2017. International market entry:
how do small and Medium-Sized enterprises make decisions?. Journal of International
Marketing, 25(1), pp.1-21.
Alexander, B. and Joe, T. eds., 2019. Managing innovation: internationalization of
innovation (Vol. 34). World Scientific.
Arregle, J.L., Duran, P., Hitt, M.A. and Van Essen, M., 2017. Why is family firms’
internationalization unique? A meta–analysis. Entrepreneurship Theory and Practice, 41(5),
pp.801-831.
Arregle, J.L., Miller, T.L., Hitt, M.A. and Beamish, P.W., 2018. The role of MNEs’
internationalization patterns in their regional integration of FDI locations. Journal of World
Business, 53(6), pp.896-910.
Attig, N., Boubakri, N., El Ghoul, S. and Guedhami, O., 2016. Firm internationalization and
corporate social responsibility. Journal of Business Ethics, 134(2), pp.171-197.
Beugelsdijk, S., Kostova, T., Kunst, V.E., Spadafora, E. and van Essen, M., 2018. Cultural
distance and firm internationalization: A meta-analytical review and theoretical
implications. Journal of Management, 44(1), pp.89-130.
References
Adeola, O., Boso, N. and Adeniji, J., 2018. Bridging Institutional Distance: An Emerging Market
Entry Strategy for Multinational Enterprises. In Emerging Issues in Global Marketing (pp. 205-
230). Springer, Cham.
Ahi, A., Baronchelli, G., Kuivalainen, O. and Piantoni, M., 2017. International market entry:
how do small and Medium-Sized enterprises make decisions?. Journal of International
Marketing, 25(1), pp.1-21.
Alexander, B. and Joe, T. eds., 2019. Managing innovation: internationalization of
innovation (Vol. 34). World Scientific.
Arregle, J.L., Duran, P., Hitt, M.A. and Van Essen, M., 2017. Why is family firms’
internationalization unique? A meta–analysis. Entrepreneurship Theory and Practice, 41(5),
pp.801-831.
Arregle, J.L., Miller, T.L., Hitt, M.A. and Beamish, P.W., 2018. The role of MNEs’
internationalization patterns in their regional integration of FDI locations. Journal of World
Business, 53(6), pp.896-910.
Attig, N., Boubakri, N., El Ghoul, S. and Guedhami, O., 2016. Firm internationalization and
corporate social responsibility. Journal of Business Ethics, 134(2), pp.171-197.
Beugelsdijk, S., Kostova, T., Kunst, V.E., Spadafora, E. and van Essen, M., 2018. Cultural
distance and firm internationalization: A meta-analytical review and theoretical
implications. Journal of Management, 44(1), pp.89-130.
23EXAM QUESTIONS AND ANSWERS
Blackburne, G.D. and Buckley, P.J., 2019. The international business incubator as a foreign
market entry mode. Long Range Planning, 52(1), pp.32-50.
Boermans, M.A. and Roelfsema, H., 2016. Small firm internationalization, innovation, and
growth. International Economics and Economic Policy, 13(2), pp.283-296.
Calabrò, A., Campopiano, G., Basco, R. and Pukall, T., 2017. Governance structure and
internationalization of family-controlled firms: The mediating role of international
entrepreneurial orientation. European Management Journal, 35(2), pp.238-248.
Conconi, P., Sapir, A. and Zanardi, M., 2016. The internationalization process of firms: From
exports to FDI. Journal of International Economics, 99, pp.16-30.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation (Vol. 11). Routledge.
Grøgaard, B., Rygh, A. and Benito, G.R., 2019. Bringing corporate governance into
internalization theory: State ownership and foreign entry strategies. Journal of International
Business Studies, 50(8), pp.1310-1337.
Grünig, R. and Morschett, D., 2017. Determining the Market Entry Modes. In Developing
International Strategies (pp. 105-123). Springer, Berlin, Heidelberg.
Hilmersson, M. and Johanson, M., 2016. Speed of SME internationalization and
performance. Management International Review, 56(1), pp.67-94.
Hofer, K.M. and Baba, A., 2018. Market Entry Strategies, Innovation and Performance of SMEs
in the Service Sector. Key Success Factors of SME Internationalisation: A Cross-Country
Perspective, p.155.
Blackburne, G.D. and Buckley, P.J., 2019. The international business incubator as a foreign
market entry mode. Long Range Planning, 52(1), pp.32-50.
Boermans, M.A. and Roelfsema, H., 2016. Small firm internationalization, innovation, and
growth. International Economics and Economic Policy, 13(2), pp.283-296.
Calabrò, A., Campopiano, G., Basco, R. and Pukall, T., 2017. Governance structure and
internationalization of family-controlled firms: The mediating role of international
entrepreneurial orientation. European Management Journal, 35(2), pp.238-248.
Conconi, P., Sapir, A. and Zanardi, M., 2016. The internationalization process of firms: From
exports to FDI. Journal of International Economics, 99, pp.16-30.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation (Vol. 11). Routledge.
Grøgaard, B., Rygh, A. and Benito, G.R., 2019. Bringing corporate governance into
internalization theory: State ownership and foreign entry strategies. Journal of International
Business Studies, 50(8), pp.1310-1337.
Grünig, R. and Morschett, D., 2017. Determining the Market Entry Modes. In Developing
International Strategies (pp. 105-123). Springer, Berlin, Heidelberg.
Hilmersson, M. and Johanson, M., 2016. Speed of SME internationalization and
performance. Management International Review, 56(1), pp.67-94.
Hofer, K.M. and Baba, A., 2018. Market Entry Strategies, Innovation and Performance of SMEs
in the Service Sector. Key Success Factors of SME Internationalisation: A Cross-Country
Perspective, p.155.
24EXAM QUESTIONS AND ANSWERS
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and product
adaptation. International Business Review, 26(2), pp.250-263.
Jalal, A., 2018. Strategic Decision Making: External Factors Influencing Foreign Market
Entry. Journal of Higher Education Service Science and Management (JoHESSM), 1(1).
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born
global. Journal of World Business, 51(1), pp.93-102.
Kraus, S., Mensching, H., Calabrò, A., Cheng, C.F. and Filser, M., 2016. Family firm
internationalization: A configurational approach. Journal of Business Research, 69(11), pp.5473-
5478.
Kreiter, S. and Helm, R., 2018. Pricing Decisions in International Industrial Markets–The Link
between Standardization at Market Entry, Pricing Capability, and Price Reactions. Business and
Management Studies, 4(3), pp.26-43.
Lojacono, G., Misani, N. and Tallman, S., 2017. Offshoring, local market entry, and the strategic
context of cross-border alliances: The impact on the governance mode. International Business
Review, 26(3), pp.435-447.
Markman, G.D., Gianiodis, P., Tyge Payne, G., Tucci, C., Filatotchev, I., Kotha, R. and
Gedajlovic, E., 2019. The who, where, what, how and when of market entry. Journal of
Management Studies, 56(7), pp.1241-1259.
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and product
adaptation. International Business Review, 26(2), pp.250-263.
Jalal, A., 2018. Strategic Decision Making: External Factors Influencing Foreign Market
Entry. Journal of Higher Education Service Science and Management (JoHESSM), 1(1).
Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born
global. Journal of World Business, 51(1), pp.93-102.
Kraus, S., Mensching, H., Calabrò, A., Cheng, C.F. and Filser, M., 2016. Family firm
internationalization: A configurational approach. Journal of Business Research, 69(11), pp.5473-
5478.
Kreiter, S. and Helm, R., 2018. Pricing Decisions in International Industrial Markets–The Link
between Standardization at Market Entry, Pricing Capability, and Price Reactions. Business and
Management Studies, 4(3), pp.26-43.
Lojacono, G., Misani, N. and Tallman, S., 2017. Offshoring, local market entry, and the strategic
context of cross-border alliances: The impact on the governance mode. International Business
Review, 26(3), pp.435-447.
Markman, G.D., Gianiodis, P., Tyge Payne, G., Tucci, C., Filatotchev, I., Kotha, R. and
Gedajlovic, E., 2019. The who, where, what, how and when of market entry. Journal of
Management Studies, 56(7), pp.1241-1259.
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25EXAM QUESTIONS AND ANSWERS
Monaghan, S., Tippmann, E. and Coviello, N., 2020. Born digitals: Thoughts on their
internationalization and a research agenda. Journal of International Business Studies, 51(1),
pp.11-22.
Mukundhan, K.V. and Nandakumar, M.K., 2016. Stakeholder influences on the choice and
performance of FDI-based market entry modes: a conceptual model. International Studies of
Management & Organization, 46(1), pp.63-74.
Murphy, M.J., 2018, July. Competing for Emerging Markets: A Resource Dependence Model of
Foreign Market Entry Mode. In Academy of Management Proceedings (Vol. 2018, No. 1, p.
18681). Briarcliff Manor, NY 10510: Academy of Management.
Prange, C., 2016. Market Entry in China. Case Studies on Strategy, Marketing, and Branding.
Cham, sl: Springer International Publishing (Management for Professionals). Online verfügbar
unter http://dx. doi. org/10.1007/978-3-319-29139-0.
Qiu, T. and Homer, P.M., 2018. Cultural fit and the choice of international market entry scale of
Chinese firms. Journal of Global Marketing, 31(5), pp.308-323.
Shen, Z., Puig, F. and Paul, J., 2017. Foreign market entry mode research: A review and research
agenda. The International Trade Journal, 31(5), pp.429-456.
Stoian, M.C., Rialp, J. and Dimitratos, P., 2017. SME networks and international performance:
Unveiling the significance of foreign market entry mode. Journal of Small Business
Management, 55(1), pp.128-148.
Tsang, E.W., 2018. Family firms and internationalization: An organizational learning
perspective. Asia Pacific Journal of Management, pp.1-21.
Monaghan, S., Tippmann, E. and Coviello, N., 2020. Born digitals: Thoughts on their
internationalization and a research agenda. Journal of International Business Studies, 51(1),
pp.11-22.
Mukundhan, K.V. and Nandakumar, M.K., 2016. Stakeholder influences on the choice and
performance of FDI-based market entry modes: a conceptual model. International Studies of
Management & Organization, 46(1), pp.63-74.
Murphy, M.J., 2018, July. Competing for Emerging Markets: A Resource Dependence Model of
Foreign Market Entry Mode. In Academy of Management Proceedings (Vol. 2018, No. 1, p.
18681). Briarcliff Manor, NY 10510: Academy of Management.
Prange, C., 2016. Market Entry in China. Case Studies on Strategy, Marketing, and Branding.
Cham, sl: Springer International Publishing (Management for Professionals). Online verfügbar
unter http://dx. doi. org/10.1007/978-3-319-29139-0.
Qiu, T. and Homer, P.M., 2018. Cultural fit and the choice of international market entry scale of
Chinese firms. Journal of Global Marketing, 31(5), pp.308-323.
Shen, Z., Puig, F. and Paul, J., 2017. Foreign market entry mode research: A review and research
agenda. The International Trade Journal, 31(5), pp.429-456.
Stoian, M.C., Rialp, J. and Dimitratos, P., 2017. SME networks and international performance:
Unveiling the significance of foreign market entry mode. Journal of Small Business
Management, 55(1), pp.128-148.
Tsang, E.W., 2018. Family firms and internationalization: An organizational learning
perspective. Asia Pacific Journal of Management, pp.1-21.
26EXAM QUESTIONS AND ANSWERS
Vahlne, J.E. and Johanson, J., 2017. From internationalization to evolution: The Uppsala model
at 40 years. Journal of International Business Studies, 48(9), pp.1087-1102.
Verbeke, A., Ciravegna, L., Lopez, L.E. and Kundu, S.K., 2019. Five configurations of
opportunism in international market entry. Journal of Management Studies, 56(7), pp.1287-1313.
Yan, S. and Liu, G., 2017. Competitive strategy, market entry mode and international
performance: the case of construction firms in China. Business and Management Studies, 3(1),
pp.1-9.
Yoboue, W.K., Yi, K. and Antwi, H.K., 2017. New paradigms in international market entry: A
reflection on the present and the future. International Journal of Scientific Research in Science
and Technology, 3(3), pp.59-67.
Vahlne, J.E. and Johanson, J., 2017. From internationalization to evolution: The Uppsala model
at 40 years. Journal of International Business Studies, 48(9), pp.1087-1102.
Verbeke, A., Ciravegna, L., Lopez, L.E. and Kundu, S.K., 2019. Five configurations of
opportunism in international market entry. Journal of Management Studies, 56(7), pp.1287-1313.
Yan, S. and Liu, G., 2017. Competitive strategy, market entry mode and international
performance: the case of construction firms in China. Business and Management Studies, 3(1),
pp.1-9.
Yoboue, W.K., Yi, K. and Antwi, H.K., 2017. New paradigms in international market entry: A
reflection on the present and the future. International Journal of Scientific Research in Science
and Technology, 3(3), pp.59-67.
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