Chapter 10: Direct Investment and Collaborative Strategies

Question 1

bargaining school theory

Answer 1

a premise that the terms of a foreign investor’s operations depend on how much the investor and host country need each other

Question 2

Consortium

Answer 2

an organization owned by more than two firms

Question 3

Coopetition

Answer 3

refers to situations in which competing firms collaborate on some portions of their operations

Question 4

Cross-licensing

Answer 4

an arrangement whereby companies exchange technology or other intangible property rather than compete with each other on every product in every market

Question 5

Dependencia Theory

Answer 5

a theory holding that emerging economies have practically no power in their dealings with MNEs

Question 6

Equity alliance

Answer 6

A collaborative arrangement in which at least one of the companies takes an ownership position (almost always a minority) in the others

Question 7

Internalization

Answer 7

control through self-handling of foreign operations, primarily because such control is less expensive than to contract with an external organization

Question 8

Resource-based view

Answer 8

each company has a unique combination of resources, capabilities, and competencies