ULUSLARARASI İŞLETME - Deneme Sınavı - 8

According to the Eclectic Paradigm, the capacity and desire of firms to go abroad depends on having or being able to acquire assets not
available to another country’s firms. Such assets refer to ownership-specific advantages because they are assumed to be unique to firms of a particular nationality of ownership. Assets include tangible resources, such as natural resources, equipment, and capital; and intangible resources, such as intellectual properties (e.g., patents, copyrights, and trademarks) and managerial or marketing skills. Alternatively, assets might be specific to a particular location (location-specific advantages)
in their origin and use, such as lower costs of production, strict protection of property rights, and broader markets.

Linkage-leverage-learning framework argues that internationalization process includes connecting and making business with resource-rich companies or companies already active in the target market, gaining
access to resources which are outside the firm and which can be incorporated through specific tactics and the repeated application  of the previous two steps. For example, some Chinese firms have entered  strategic alliances with Western companies that have reputable trademarks (linkage). The managers of these firms have frequently visited their partners’ marketing departments to understand their  marketing processes (leverage). The firms have repeatedly connected with new Western companies and consequently they utilize the resources of their partners (learning). In the question, utilizing the resources of foreign partners is about the pillar of learning.

The potential advantages of first movers may be counterbalanced by various disadvantages, which result in late-mover advantages. Specifically, late-mover advantages are revealed in three ways: Firstly, late movers can free-ride on first movers’ pioneering investments. Secondly, first movers face more considerable technological and market
uncertainties. Finally, as incumbents, first movers may be locked into a set of fixed assets or reluctant to cannibalize the existing product lines in favor of the new ones.

A Multinational Enterprise (MNE) is any business that has productive activities in two or more countries.

Global corporations view the world as one marketplace and produce standardized goods and services to serve this market.

The born-global firm refers to a young entrepreneurial company that initiates international business activity very early in its evolution, moving quickly into international markets.

Multidomestic corporations are made up of relatively independent subsidiaries each of which produces customized goods and services for the local market being served.

Transnational corporations integrate a geographically dispersed set of specialized activities into a single production process.

Exporting, an entry mode through which products produced in one country are sold to customers in the other country or countries, is the most common and understandable entry mode in international business. Many firms start to internationalize through exporting then shift to different entry modes.

The success of an alliance is based on three main factors: partner
selection, alliance governance, and alliance management.

Equity alliances are built based on equity ownership. Minority equity alliances and joint ventures are the most common types of equity
alliances in international business. The joint venture is a popular entry mode that occurs when two or more firms form a separate organization and have equity ownership in the new entity. On the other hand, contractual alliances are based on contractual provisions. They include contract manufacturing, licensing, franchising, research and development contracts, joint marketing, consortia, turnkey projects, build-operate-transfer arrangements, and management contracts.

The distinction between a merger and an acquisition is precise. A merger refers to the joining of two independent companies to form a combined entity. An acquisition describes the purchase or takeover of one company by another. Despite the distinction between
mergers and acquisitions, many people use the umbrella term mergers and acquisitions.

Greenfield investment is a type of foreign direct investment (FDI) in which foreign operations of the firm in a given country start from scratch. A wholly-owned subsidiary is an overseas operation that is wholly owned and controlled by an international firm. There are two ways of establishing wholly-owned subsidiaries: merger and acquisitions and greenfield investments. Equity alliances are built based on equity
ownership. Minority equity alliances and joint ventures are the most common types of equity alliances in international business. Contractual alliances are based on contractual provisions. They include contract manufacturing,licensing, franchising, research and development contracts, joint marketing, consortia, turnkey projects, build-operate-transfer arrangements, and management contracts. Joint marketing refers to an arrangement among two or more partners based in different countries that focuses on international market expansion
through access to capabilities and resources in international markets.

Build-operate-transfer agreements are now often used, instead of the
traditional build-transfer type of turnkey projects, in order to obtain a longer-term presence.

E-commerce includes activities supporting online transactions such as marketing, advertising and customer services. It refers to the buying and selling
of goods and services conducted over the Internet. Thus, the aswer is D.

EDI or electronic data interchange enables computer-to-computer exchange of
documents and transactions in a standard format. Therefore, the answer is A.

Option A refers to 'E-commerce', option C is an act of large international companies such as Microsoft, Coca-Cola, VW, and Nike, options D and E refer to 'ERP'. Cloud computing is the delivery of on-demand selfservice computing resources over the Internet on a pay-for-use basis from any connected devices and locations. Thus, the answer is B.

The benefits include cost-efficiency (as customers pay only for actual usage),
speed, flexibility, and elasticity (e.g. usage on-demand asneeded basis) as well as Audit and Compliance. Safety is not among the benefits. Therefore, the answer is E.

Options B and E are about 'variety', option A defines 'velocity', and option D refers to 'volume'. Veracity refers to data uncertainty. Thus the answer is C.

Maximizing downtime is not an impact of Industry 4.0 on business firms. On the contrary, it minimizes downtime. Thus, the answer is D.

First, an ethical issue must be recognized which is followed by examining the facts, creating and evaluating alternative actions, making a decision and implementing the
course of action, and evaluating the outcome, respectively. Thus, the answer is A.

The Common Good Approach refers to a certain general conditions that are equally to everyone’s advantage. Decisions should be made with considerations to the common good which includes the social systems, institutions, and natural and technologial environments. Thus, the answer is D.

The options A, B, C, and D belong to secondary stakeholders for CSR while option E is a primary stakeholder. Thus, the answer is E.

According to Carroll, there are four types of social responsibilities; philanthropic, ethical, legal, and economic responsibilities. Thus, the answer is B.