代写 UTS International Business assignment
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代写 UTS International Business assignment
21506-International Business Capstone
Week 3
19 August 2016
National Competitive Advantage and the Internationalization Process of firms
Overview
1.Theories of international trade and investment
2.Why and how do firms internationalise?
Mercantilism
•Mercantilism: A belief, popular in the 16th century, that national prosperity results from maximising exports and minimising imports.
•Today, some argue for neomercantilism—the idea that a nation should run a trade surplus.
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Absolute Advantage Principle
Comparative Advantage
代写 UTS International Business assignment
Factor Proportions Theory
International Product Life Cycle Theory
•Each product and its associated manufacturing technologies go through three stages of evolution: introduction, maturity, and standardisation.
•In the introduction stage, the inventor country enjoys a monopoly both in manufacturing and exports. Example: the television set.
•In the maturity stage, the product’s manufacturing becomes relatively standardised, and other countries start producing and exporting the product.
•In the standardisation stage, manufacturing ceases in the original innovator country, and this country becomes a net importer of the product. Today, due to globalisation, the cycle occurs quickly for many products.
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Michael Porter’s Diamond Model:
Sources of National Competitive Advantage
Factor conditions: Quality and quantity of labor, natural resources, capital, technology, know-how, entrepreneurship, and other factors of production.
Related and supporting industries: The presence of suppliers, competitors, and complementary firms that excel within a given industry.
Demand conditions at home: The strengths and sophistication of customer demand.
Firm strategy, structure, and rivalry: The nature of domestic rivalry and the conditions that determine how a nation’s firms are created, organised, and managed.
FDI-Based Explanations:
Internalisation Theory
•Explains how the MNE chooses to acquire and retain one or more value-chain activities inside itself.
•Such “internalisation” provides the MNE with greater control over its foreign operations.
•Internalisation avoids the drawbacks of dealing with external partners, such as reduced quality control and the risk of losing proprietary assets to outsiders.
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FDI-Based Explanations:
Dunning’s Eclectic Paradigm
Three conditions determine whether or not a company will enter a given foreign country via FDI:
1.Ownership-specific advantages: Knowledge, skills, capabilities, relationships, or physical assets that the firm owns and that are the basis of its competitive advantages
2.Location-specific advantages: Similar to comparative advantages; specific advantages that exist in the country that the MNE has entered, or is seeking to enter, such as natural resources, low-cost labour, or skilled labour
3.Internalisation advantages: Control derived from internalising foreign-based manufacturing, distribution, or other value-chain activities
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THE UPPSALA MODEL OF INTERNATIONALIZATION
Swedish researchers at the University of Uppsala in 1970’s
Based on a study of four Swedish manufacturing firms
Model describes choice of market and form of entry in stages
THE UPPSALA MODEL
The 1977 model talks about the liability of foreignness.
Both geographic and psychic distance play a role in the internationalization process.
The 2009 updated model acknowledges the importance of networks and mentions the ‘liability of outsidership’.
Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40, 1411-1431.
Born Globals
Early Internationalizing firms
Refers to international entrepreneurs
Small firms that go internationally from inception or very soon after.
代写 UTS International Business assignment
