summer exam

Question 1

What is the Varieties of Capitalism (VoC) framework?

Answer 1

A theoretical approach comparing how different countries coordinate economic activity across spheres such as finance, industrial relations, education, and corporate governance. Includes LMEs (e.g. USA, UK) and CMEs (e.g. Germany, Japan)

Question 2

What are characteristics of Liberal Market Economies (LMEs)?

Answer 2

Short-term capital, fluid labour markets, competitive inter-firm relations, general education systems. Examples: USA, UK.

Question 3

What are characteristics of Coordinated Market Economies (CMEs)?

Answer 3

Long-term capital, stable employment, strong vocational training, strategic inter-firm cooperation. Examples: Germany, Japan.

Question 4

How is the US corporate governance system structured?

Answer 4

Shareholder-oriented, dispersed ownership, flexible labour markets, weak vocational training systems.

Question 5

What is State Capitalism?

Answer 5

An economic system where the state plays a central role through ownership, regulation, and strategic coordination of the economy. Examples: China, Singapore, Taiwan.

Question 6

What defines Taiwan’s model of state capitalism?

Answer 6

Market-oriented with low statism and state ownership. Strong FDI links (especially in semiconductors via TSMC), informal networks, and personal capitalism.

Question 7

What are institutional voids in emerging markets?

Answer 7

Gaps in formal institutions (e.g. rule of law, IP rights, infrastructure) which create challenges and opportunities for MNEs. Firms often rely on informal networks.

Question 8

What is the ABB approach to entering China?

Answer 8

A localisation strategy with full R&D, manufacturing, sales, and service presence. Targeted China as a market, not just an export platform.

Question 9

What are sustainability transitions?

Answer 9

Shifts in energy, transport, and economic systems towards low-carbon and sustainable models. Institutional and policy environments heavily influence progress.

Question 10

How does Japan support hydrogen transitions?

Answer 10

Public-private cooperation, Toyota innovation, infrastructure subsidies, long-term national goals. Part of a CME model.

Question 11

How does India approach sustainability?

Answer 11

Renewable energy expansion, balancing development and poverty alleviation, strong private sector in solar and wind, Companies Act CSR mandates.

Question 12

What is digital transformation?

Answer 12

Use of digital technology to change business operations, models, and strategies. Includes AI, IoT, servitisation, and platform businesses.

Question 13

What is Society 5.0 (Japan)?

Answer 13

Japan’s vision of a “super-smart” society integrating IoT, AI, and robotics into all sectors to address social challenges (e.g., ageing population).

Question 14

What is Singapore’s Smart Nation strategy?

Answer 14

A national initiative to digitalise government, infrastructure, and the economy. Supported by digital economy agreements and regulatory sandboxes.

Question 15

What is a regulatory sandbox?

Answer 15

A controlled environment where businesses can test innovative products/services under relaxed regulatory conditions with oversight.

Question 16

How does Merck illustrate responsible lobbying?

Answer 16

Case study on lobbying for mandatory HPV vaccination (Gardasil). Raises questions of public good vs. corporate interest.

Question 17

What are externalities in MNE activity?

Answer 17

Unintended side effects of business activities, such as environmental damage or social inequality. Can be positive or negative.

Question 18

How can MNEs contribute to SDGs?

Answer 18

By aligning operations with UN goals, e.g. health (SDG 3), responsible consumption (SDG 12), marine protection (SDG 14), using strategic and ideational approaches.

Question 19

What is the “same technology, different outcomes” phenomenon?

Answer 19

The idea that the same digital technologies produce different results depending on national institutional environments. Example: Japan vs. Singapore digital strategies.

Question 20

What are institutional complementarities?

Answer 20

The way institutions in one domain (e.g. education, finance) support and reinforce others, creating coherent systems like CME or LME.

Question 21

What defines the Japanese digital innovation model?

Answer 21

Incremental innovation, long-term employment, strong manufacturing, but slow adoption of frontier tech and delayed digital services.

Question 22

What defines Singapore’s digital innovation model?

Answer 22

Strong state-led strategy, early IT policies, Smart Nation initiative, high digital literacy, but reliance on MNCs and risk-averse culture.

Question 23

How do Nintendo and Grab reflect their institutional contexts?

Answer 23

Nintendo shows Japan’s slow, internal innovation with government incentives; Grab reflects Singapore’s state-backed VC and gig economy model.

Question 24

What is the role of the gig economy in digital transformation?

Answer 24

Gig work supports platform models and labour flexibility but often lacks worker protections. Common in LMEs and tech-led economies.

Question 25

What is servitisation in business models?

Answer 25

The transition from selling products to offering integrated product-service systems, often via subscriptions or usage-based pricing.

Question 26

What are digital twins and how are they used?

Answer 26

Virtual representations of real-world systems using real-time data. Used for simulation, prediction, and optimization in industries.

Question 27

What are characteristics of the Taiwanese business model?

Answer 27

Family-led firms, flexible internationalisation, diaspora networks, limited formal training, and reliance on personal capital networks.

Question 27

What is the significance of TSMC in Taiwan’s economy?

Answer 27

Key player in global semiconductor manufacturing. Demonstrates Taiwan’s state-supported yet market-oriented industrial strategy.

Question 28

What are common challenges in Taiwanese capitalism?

Answer 28

Geopolitical risks, talent shortages, global competition, and digital transformation pressures.

Question 29

What does “path dependency” mean in institutional theory?

Answer 29

Historical institutional arrangements shape future choices and adaptation, making change gradual and often incremental.

Question 30

What is the Triple Embeddedness Framework (TEF)?

Answer 30

Analyzes how firms are embedded in three environments: industry, national institutions, and transnational fields, explaining MNE behavior.

Question 31

What is the Political CSR perspective on MNEs?

Answer 31

Views MNEs as political actors with responsibilities beyond profit—e.g. providing public goods, addressing global challenges, engaging in lobbying.

Question 32

What does “responsible lobbying” involve?

Answer 32

Transparent, ethical engagement with policymakers to support societal goals, not just business interests. Balances influence with accountability.

Question 33

What is the role of education and training in VoC systems?

Answer 33

CMEs rely on vocational and firm-specific training; LMEs prefer general education and market-based skill acquisition.