Global Business - Chapter 4 Test Bank Solution Manual (Fully Solved)
SWOT - Answers Strengths, Weakness, Opportunity, Threats
VIRO - Answers Value, rarity, imitability, organization
capability - Answers the tangible and intangible assets a firm uses to choose and implement its
strategies
reshoring - Answers moving formerly offshored activities back to the home county of the focal firm
Resource (capabilities) - Answers The tangible and intangible assets a firm uses to choose and
implement its strategies
Tangible resources and capabilities - Answers Assets that are observable and easily quantified
Intangible resources and capabilities - Answers Assets that are hard to observe and difficult (if not
impossible) to quantify. (human, innovation, reputational)
value chain - Answers A series of activities used in the production of goods and services that make a
product or service more valuable
benchmarking - Answers Examining whether a firm has resources and capabilities to perform a
particular activity in a manner superior to competitors
commoditization - Answers A process of market competition through which unique products that
command high prices and high margins gradually lose their ability to do so, thus becoming commodities
outsourcing - Answers Turning over an organizational activity to an outside supplier that will perform it
on behalf of the local firm
original brand manufacturer (OBM) - Answers firm that designs, manufactures, and markets branded
products
original design manufacturer (ODM) - Answers firm that both designs and manufactures products
original equipment manufacturer (OEM) - Answers firm that executes design blueprints provided by
western firms and manufactures such products
offshoring - Answers Outsourcing to an international or foreign firm
inshoring - Answers Outsourcing to a domestic firm
captive sourcing - Answers Setting up subsidiaries abroad so that the work done is in-house but the
location is foreign. Also known as foreign direct investment (FDI)
VRIO framework - Answers The resource based framework that focuses on the value (V), rarity (R),
imitability (I), and organizational (O) aspects of resources and capabilities
SWOT - Answers Strengths, Weakness, Opportunity, Threats
VIRO - Answers Value, rarity, imitability, organization
capability - Answers the tangible and intangible assets a firm uses to choose and implement its
strategies
reshoring - Answers moving formerly offshored activities back to the home county of the focal firm
Resource (capabilities) - Answers The tangible and intangible assets a firm uses to choose and
implement its strategies
Tangible resources and capabilities - Answers Assets that are observable and easily quantified
Intangible resources and capabilities - Answers Assets that are hard to observe and difficult (if not
impossible) to quantify. (human, innovation, reputational)
value chain - Answers A series of activities used in the production of goods and services that make a
product or service more valuable
benchmarking - Answers Examining whether a firm has resources and capabilities to perform a
particular activity in a manner superior to competitors
commoditization - Answers A process of market competition through which unique products that
command high prices and high margins gradually lose their ability to do so, thus becoming commodities
outsourcing - Answers Turning over an organizational activity to an outside supplier that will perform it
on behalf of the local firm
original brand manufacturer (OBM) - Answers firm that designs, manufactures, and markets branded
products
original design manufacturer (ODM) - Answers firm that both designs and manufactures products
original equipment manufacturer (OEM) - Answers firm that executes design blueprints provided by
western firms and manufactures such products
offshoring - Answers Outsourcing to an international or foreign firm
inshoring - Answers Outsourcing to a domestic firm
captive sourcing - Answers Setting up subsidiaries abroad so that the work done is in-house but the
location is foreign. Also known as foreign direct investment (FDI)
VRIO framework - Answers The resource based framework that focuses on the value (V), rarity (R),
imitability (I), and organizational (O) aspects of resources and capabilities
