what is a home country
the nation where a company is legally registered
what is a host country
the foreign country where a company is based in another nation
what is IB
any business activity that crosses national boundaries
what is FDI
an investment made by a company in one country into an enterprise operating in another country - at least 10% owner equity
what are the three types of IB
trade
fdi
strategic alliance
what is trade
imports, exports, % of gdp
what is fdi associated with
net inflows
what are net inflows
investment a country receives from the rest of the world
what is strategic alliance simply
joint partnership with a country
what is strategic alliance
formal agreement where two or more organisations share resources and gain mutual benefits while maintaining their seperate independence
why enter a joint venture partnership with a company
- you want to enter the country
- you don’t have the advantage you need
- you have the liability of being a foreigner
what are multinational enterprises
companies that have engagement with more than one country at a given time
example of mnes
apple, microsoft, amazon
what is the issue with small and medium sized enterprises
more limited resources to compete in international environments
what are multinational corporations
where the head office is in the home country, centralised decision making
what are transnational corporations
where there is no single home country alignment, there is integrated and decentralised decision making with a localised strategy
what are global firms
companies designed to serve a single world market instead of a variety of national markets
what are the two factors that drive ib
internal and external drivers
what are the four internal drivers
sales expansion
competencies leverage
risks diversification
resource access
what is meant by sales expansion as an internal driver
resource access, upselling or reaching new markets
what is meant by competencies leverage as an internal driver
different locations have different advantages
what is meant by risk diversification as an internal driver
not putting all eggs in one basket, spreading investments across markets
what is meant by resource access as an internal driver
being allowed to access raw materials, info, tech, or a company leading in the market
what are the 4 external drivers
technology
liberalised regulatory framework
access to info/finance
friendly trade/investment policies
