ULUSLARARASI İŞLETME

In the IP model, there are two types of variables:
state and change. The change variables are the crucial
ones since these processes change the characteristics
of the focal firm and its environment and then
trigger further changes. They involve knowledge
development processes, including learning,
creating and trust-building; and commitment
processes, including reconfiguring resources and
coordinating. The state variables include both
operational (resources, skills, relationships, and
organizational culture) and dynamic (integrating,
building and reconfiguring competencies)
capabilities, commitments (the distribution of
resources over the firm’s functions, its product lines,
the countries where it is active, and the networks in
which it has invested), and the performance of the
firm.

The LLL framework has three pillars: linkage,
leverage, and learning

The LLL framework has three pillars: linkage,
leverage, and learning. Linkage refers to connecting
and making business with resource-rich companies
or companies already active in the target market.
The linkage can be affected through strategic
alliances

First-mover advantages include catching
learning effects, achieving economies of scale,
and forging alliances with the most attractive
local partner, and setting the standards and
rules. Late-mover advantages comprise free-riding
on first movers’ pioneering investments,
avoiding considerable technological and
market related uncertainties, and evading
being locked into a set of fixed assets or
cannibalizing the existing product lines in
favor of the new ones.

Exporting refers to selling products which
have been produced in one country
to customers in the other country or
countries.

There are some disadvantages of exporting (Hill
& Hult, 2019: 439):
1. Especially for bulk products, high transport
costs can make exporting expensive.
2. Tariff barriers can make exporting costly.
Similarly, the threat of tariff barriers by the
host-country government can make it very
risky.
3. In indirect exporting, intermediaries often
carry the products of competing firms and
so have divided loyalties. In such cases, the
intermediary may not do as good a job as
the firm would if it managed its marketing
itself.

In partner selection, the following partner traits
have a positive influence on alliance performance:
partner complementarity, partner commitment,
and partner fit. Partner complementarity is the
extent to which the partner has capabilities that
the company lacks and that it values. Partner
commitment refers to making necessary sacrifices
for the success of the alliance and not exploiting
the alliance opportunistically for the partner’s ends.
Partner fit is the congruence between the partners’
visions

There are three main disadvantages of contract
manufacturing (Hill et al., 2015: 311-312):
1. If the company becomes too dependent
upon the specialist provider of the
contracting activity, the specialist can
use this fact to raise prices beyond some
previously agreed-upon rate.
2. As firms employ contract manufacturers
for production, they may nurture potential
rivals, and they may help build an industrywide resource that lowers the barriers to
entry in that industry.
3. A company that is not careful can lose
important competitive information when
it adopts contract manufacturing. The firm
that gives up developing its manufacturing
knowledge could unintentionally give up
opportunities to improve its capabilities in
product design.

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 (Dunning & Lundan, 2008: 96).

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.

In the IP model, there are two types of variables: state and change. The change variables are the crucial ones since these processes change the characteristics of the focal firm and its environment and then trigger further changes. They involve knowledge development processes, including learning, creating and trust-building; and commitment processes, including reconfiguring resources and coordinating. The state variables include both operational (resources, skills, relationships, and organizational culture) and dynamic (integrating, building and reconfiguring competencies) capabilities, commitments (the distribution of resources over the firm’s functions, its product lines, the countries where it is active, and the networks in which it has invested), and the performance of the firm.

The internationalization process model sees internalization as a cyclical process between state and change variables.

The LLL framework has three pillars: linkage, leverage, and learning.

First-mover advantages include catching learning effects, achieving economies of scale, and forging alliances with the most attractive local partner, and setting the standards and rules. 

Late-mover advantages comprise free-riding on first movers’ pioneering investments, avoiding considerable technological and market related uncertainties, and evading being locked into a set of fixed assets or cannibalizing the existing product lines in favor of the new ones.

The born-global firm, a young entrepreneurial company that initiates international business activity very early in its evolution, rushing into foreign markets.

Exporting has many advantages;

It increases overall sales volume, improves market share, and generates profit margins that are often more favorable than in the domestic market.

It increases economies of scale, reducing per-unit costs of manufacturing.

It diversifies the customer base, reducing dependence on home markets.

It stabilizes fluctuations in sales associated with economic cycles or seasonality of demand.

It reduces the cost of foreign market entry; the firm can use exporting to test new markets before committing to more considerable resources through other entry modes.

It minimizes risk and maximizes flexibility compared to different entry modes.

It leverages the capabilities of foreign distributors and other business partners located abroad.

Strategic alliances, a medium to a long-term relationship between firms, are formed to support partners to achieve their strategic objectives through cooperation.

There are four significant motivations for firms to enter strategic alliances:

Transferring technology across borders more easily,

Accessing new markets by using the complementary resources of local firms, including distribution channels and product range extensions,

Leveraging specific capabilities of partners and saving costs of duplication, such as fixed costs,

Sharing risks among the alliance partners.

However, the rate of failure in international strategic alliances is quite high.

In the IP model, there are two types of variables: state and change. The change variables are the crucial ones since these processes change the characteristics of the focal firm and its environment and then trigger further changes. They involve knowledge development processes, including learning, creating and trust-building; and commitment processes, including reconfiguring resources and coordinating. The state variables include both operational (resources, skills, relationships, and organizational culture) and dynamic (integrating, building and reconfiguring competencies) capabilities, commitments (the distribution of resources over the firm’s functions, its product lines, the countries where it is active, and the networks in which it has invested), and the performance of the firm. The correct answer is E.

In the IP model, there are two types of variables: state and change. The change variables are the crucial ones since these processes change the characteristics of the focal firm and its environment and then trigger further changes. They involve knowledge development processes, including learning, creating and trust-building; and commitment processes, including reconfiguring resources and coordinating. The state variables include both operational (resources, skills, relationships, and organizational culture) and dynamic (integrating, building and reconfiguring competencies) capabilities, commitments (the distribution of resources over the firm’s functions, its product lines, the countries where it is active, and the networks in which it has invested), and the performance of the firm. The correct answer is E.