MGM5966 Week 8

The concept of describes the stages of a manufacturing process necessary to produce a product or service.

• Demand product

• Value product

• Demand chain

• Value chain

Which of the following is not a question asked as part of a VRIO analysis?

• Does the resource add value?

• Is the resource rare?

• Policies & procedures organized to support exploitation of this resource?

• Is the resource intangible?

High investment risk due to large capital commitment & long pay-back periods, yet no co-owner & integration risks, is...

• Greenfield

• Joint venture

• Full acquisition

• Partial acquisition

Which of the following statements regarding institutional frameworks and foreign entry strategies is correct?

• Regulatory institutions may prohibit certain operations or transactions.

• Lack of contract enforcement increases the costs of arm-length contracts

• Institutional idiosyncrasies increases the need to acquire local knowledge.

• All of the above statements are correct.

Non-equity mode is a mode of entry that involves investing in a local firm.

• True

• False

The RBV suggests that firms need to take actions deemed legitimate and appropriate by the formal & informal instituition

• True

• False

With regard to foreign market entry, the resource-based view argues that foreign firms need to _____.

• take action deemed legitimate & appropriate by formal & informal institutions

• be aware of the numerous regulatory risks and trade and investment barriers

• understand the numerous differences in cultures, norms, and values

• deploy many resources & capabilities to offset liability of foreignness

Which of the following is an advantage shared by both greenfield operations and acquisitions?

• Protection of know-how

• Add new capacity to industry

• Fast entry speed

• Low development costs

An advantage of joint ventures is _____.

• the protection of know-how

• the access to partners’ assets

• the ease of global coordination

• the complete equity and operational control

What are the strategic goals that drive the location of foreign entries?

• Natural resource seeking

• Market Seeking

• Innovation Seeking

• Efficiency Seeking