GMS 522 Final Exam Guide 2024 with complete solution

GMS 522 Final Exam Guide 2024 with complete solution Internationalization ANS--defined as the process by which firms become more engaged in international markets. -the process involves varying degrees of financial and other resource commitments to foreign markets and of course, various degrees of risk Mode of Entry ANS-central to the process of internationalization is the selection of an entry mode. These range from low commitment modes such as exporting high commitment modes such as foreign direct investment Motivation ANS-the motivation for internationalization may either be proactive (firm wants to) or reactive (firm has little choice) Uppsala or U model ANS-the firm first expands to a psychically close market and having become familiar with that market, will target slightly more distant markets. experiential knowledge is the major driver of its pattern of internationalization. The Uppsala model has been criticized for its linear approach to the internationalization process Dunnings OLI framework ANS-firms expand abroad to capitalize on ownership, location and internalization advantages Advantages of Dunnings OLI framework ANS--ownership of foreign assets will confer on the firm a competitive advantage in the foreign market which is not enjoyed by competing firms that do not own such assets -location confers advantages in terms of tax or other investment incentives offered by the gov't of the host country or a more favorable industrial relations climate for the firm's operations -internalization of firm-specific advantages such as proprietary technology confers benefits to the firm over alternatives such as licensing Springboard or latecomer perspective ANS-emerging market firms internationalize in order to overcome limitations inherent in their home-country environment, such as small market size, institutional immaturity or a relatively unsophisticated consumer base. To accomplish this firms aggressively acquire strategic assets from MNCs in developed countries Systematic four-step process ANS-1)Macro segmentation 2)Preliminary scr