Issues with Numbers 1, 39, & 99

Admin Thu Jul 24, 2008 10:31 pm

1 Why would a firm prefer to execute a green-field investment instead of acquiring an existing asset?

From Page 418

If a firm is considering entering a country in which there are no incumbent competitors to be acquired, then a Greenfield venture may be the only mode. Even when incumbents exist, if the competitive advantage of the firm is based on the transfer of organizationally embedded competencies, skills, routines, and culture, it may still be preferable to enter via a Greenfield venture. Things such as skills and organizational culture, which are based on significant knowledge that is difficult to articulate and codify, are much easier to embed in a new venture than they are in an acquired entity, where the firm may have to overcome the established routines and culture of the acquired firm. [I think the short answer to what the book has is that it give the firm more control.]

39. Which of the following countries has not yet joined the EU because of an implied Loss of national sovereignty?

Page 278, Romania & Bulgaria could join by 2007. Turkey by 2009. Since we are in 2008 that leaves Turkey provided that question comes from the 5th edition. The problem will be if he has those three on the same line then we’ll need to know the information.

99. Firms that pursue a(n) _____ strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products.

4th Edition of the book, page 400 says the following under INTERNATIONAL STRATEGY “Firms that pursue an international strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products.

Kimberly