BLOCK 2 (chapter 2 and 6) Flashcards
WHAT ARE FSA?
they are competitive advantages that allow the firms to overcome barriers to trade
WHAT ARE 3 FSA?
1) asset type =tangible and intangible assets
2)transaction type = conduct transactions efficiently
3) recombinant type = capability to have firm assets beyond their capabilities
WHAT ARE CSA?
Advantages that not specific to a firm but it is available to all
WHAT ARE 2 CSA?
1) country level= macro relevant to firms political/env
2) industry level= making decision based off the maximised benefits for your firm
WHAT ARE 2 ENTRY MODES?
1) non-equity entry modes= lower committement
2) equity modes= higher commitement
WHAT ARE 2 NON-EQUITY ENTRY MODE?
1) exports
2)licensing and franchising
WHAT ARE 4 EQUITY MODES?
1)acquisition
2)greenfield
3)FDI
4) shared ownership
WHAT ARE 4 CHALLENGES OF SMEN’S?
1) cannot buy a way into the market
2)cannot customise product or brand
3)lack of expertise
4)more innovative and entrepreneurial
WHAT IS INTERNATIONAL TRADE?
a branch of eco that is concerned with the exchange of goods and services in foreign countries
WHAT ARE THE 2 CONCEPTS OF IT THEORY?
1) mercantilism
2) neo-mercantilism
WHAT IS MERCANTILISM?
the concept that we can improve a country’s well-being by increasing exports and reducing imports
WHAT IS NEO MERCANTILISM?
the concept that the government can improve a country’s well-being without the reliance of precious metals
WHAT ARE BARRIERS TO TRADE?
It raises the cost of the good which makes it more expensive to the local buyer
WHY HAVE BARRIERS TO TRADE?
1) reduce reliance on foreign firms
2)encourages local production
3)protects local jobs
4) reduce BOP problems
WHAT IS THE THEORY OF ABSOLUTE ADV?
countries that are able to produce more goods and services than their competitors
