A complete summary of the PowerPoint slides used in the International Business course, including diagrams and explanations of abbreviations, in color. This summary provides a comprehensive overview of the content covered in the slides, supplemented with key terms, concepts, and diagrams from the co...
MNB3701 ASSIGNMENT 3 2024 POSSIBLE QUESTIONS AND ANSWERS
All for this textbook (14)
Written for
Katholieke Universiteit Brussel (KUB)
Handelswetenschappen
International Business (HBA01H)
All documents for this subject (2)
Seller
Follow
kobeponsaerts
Content preview
INTERNATIONAL BUSINESS
PART 1] FOUNDATIONS
Chapter 1] Globalizing Business
IB
GB
MNE
FDI
BNP
BBP
BNI
koopkrachtpariteit
- triple bottom line
= performance along economic, social and environmental dimensions
- Liability of outsidership
= the inherent disadvantage outsiders experience in a new environment
1
,Globalization = a process leading to greater interdependence and mutual
awareness among economic, political and social units in the world,
and among actors in general - Mauro Guillén
- An institution-based view
-> formal rules (requirements to treat domestic and foreign rms as equals…)
-> informal rules (culture, norms values…)
=> suggest that the formal an informal rules of the game, know as
institutions, shed light on what is behind rms’ performance around the
globe (performance determined only by external environments)
- A resource based view
-> internal resources and capabilities
-> LOF = the liability of foreignness: the more a rm’s origins di er from the
host environment, the les the rm has experience in the host
country and the further away its nearest prior a liate
What is GLOBALIZATION?
=“ a process leading to greater interdependence and mutual awareness
(re exivity) among economic, political and social units in the world, and
among actors in general.” - Guillén
Globalization or Slowbalization?
The concept gross xed capital formation = domestic + foreign investment
3 views on globalization: 1] Friedman - the world is at -> globalization is
advanced and inevitable
2] Florida - the world is spiky -> globalization is
concentrated and stable
3] Ghemawat - semi-globalization -> globalization
is partial
2
fl fi fi fi fi fl ffi fi ff
,TNI
Unctad Transnationality index : arithmetic mean of 3 ratio’s
–> foreign assets/total assets
(For the top 100 TNC’s: –> foreign sales/total sales
mean TNI is 62.4%!) –> foreign employment/total employment
Chapter 2] Formal institutions : multinationals and the EU
Financial crisis of 2008: banks made major mistakes in their risk management
practices
-> combination of cognitive and normative pressures
3
, understanding institutions
The problem is not institutions (‘rules of the game’), but institutional transitions:
fundamental and comprehensive changes introduced to formal and informal rules of
the game that a ect rms als players
-> institution-based view: succes and failure of rms are enabled and
constrained by institutions
-> formal institutions: laws, regulations, and rules - may be imposed by home
countries and host countries
≠ norms: values, beliefs, and actions
- Regulatory Pillar = the coercive power of governments
- Normative Pillar = the mechanism trough which norms in uence individuals and
rm behavior
- Cognitive Pillar = the internalized, taken-for-granted values and beliefs that
guide individual and rm behavior
Institutions: reduce uncertainty
—> not static: evolve over time
= institutional transition = fundamental and comprehensive
change introduced to the formal and
informal rules of the game that a ect
organizations as players’
Institutional frameworks: reduce the potential for opportunistic behavior
4
ff fifi fi fi fl ff
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kobeponsaerts. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.26. You're not tied to anything after your purchase.
