Untitled Deck Flashcards
(13 cards)
What are the views on globalization?
New, Evolutionary, and Pendulum
What is the ‘New’ view on globalization?
A force sweeping through the world in recent times.
What is the ‘Evolutionary’ view on globalization?
A long-run historical evolution since the dawn of human history.
What is the ‘Pendulum’ view on globalization?
One that swings from one extreme to another from time to time.
What is Foreign Direct Investment (FDI)?
Direct investment in, control, and management of value-added activities in other countries.
What are the political views on FDI?
Radical View, Free Market View, Pragmatic Nationalism.
What are the benefits to a country receiving FDI?
Capital Inflow, Technology Spillover, Advanced Management Know-How, Job creation.
What are the costs to a country receiving FDI?
Loss of Sovereignty, Adverse effects on competition, Capital outflow.
How do resources and capabilities influence competitive dynamics?
Resource similarity and market commonality can yield a powerful framework for competitor analysis.
What is resource similarity?
The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.
How does resource similarity impact competitive dynamics?
Firms with a high degree are likely to have similar competitive actions.
Example: Starbuck’s instant coffee & McDonald’s iced coffee.
What are the classical theories of international trade?
Mercantilism, Absolute advantage, and Comparative advantage.
