International business
1. Which four archetypes does Verbeke distinguish? Draw the figures associated with these archetypes.
• Centralized exporter
• International projector
• International coordinator
• Multi-centered MNE
2. Is there one best model? Why or why not?
No, there is no best model, because using which model is depends on host country and FSAs.
3. Do you consider a centralized exporter a true multinational?
Yes, it has operation in more than one country.
4. What does it mean that the FSA is embodied in the product in case of an international exporter?
Exporters develop products on the basis of a favorable home country environment, including local clustering, and make the exporting firm successful in international markets
5. Does the firm develop FSAs in the host country in case of the international projector?
No, they just transfer the FSAs they developed in the home country, clone their operation
6. Why is the international coordinator an example of a global value chain?
Because for international coordinators, International operations are specialized in specific value-added activities and form vertical value chains across borders. The key FSAs are in efficiently linking these geographically dispersed operations through seamless logistics.
7. Why is a multi-centered MNE characterized by maximum local responsiveness?
Because multi-centered MNEs recognize that operating in each host country need to build distinct location-bounded FSAs.
8. The FSA is also framed in terms of core competences. That is the FSA is strongly related to the core competences of a firm. What key characteristics does Verbeke list for these core competences?
Difficult to imitate
Broadly used in variety markets
Make a contribution to customer needs
Large effect on firm’s present and future performance if lose this competence
9. What critique does Verbeke have on the concept of core competences?
Overestimate the role of strategic management, underestimate the role of host country
• Centralized exporter
• International projector
• International coordinator
• Multi-centered MNE
2. Is there one best model? Why or why not?
No, there is no best model, because using which model is depends on host country and FSAs.
3. Do you consider a centralized exporter a true multinational?
Yes, it has operation in more than one country.
4. What does it mean that the FSA is embodied in the product in case of an international exporter?
Exporters develop products on the basis of a favorable home country environment, including local clustering, and make the exporting firm successful in international markets
5. Does the firm develop FSAs in the host country in case of the international projector?
No, they just transfer the FSAs they developed in the home country, clone their operation
6. Why is the international coordinator an example of a global value chain?
Because for international coordinators, International operations are specialized in specific value-added activities and form vertical value chains across borders. The key FSAs are in efficiently linking these geographically dispersed operations through seamless logistics.
7. Why is a multi-centered MNE characterized by maximum local responsiveness?
Because multi-centered MNEs recognize that operating in each host country need to build distinct location-bounded FSAs.
8. The FSA is also framed in terms of core competences. That is the FSA is strongly related to the core competences of a firm. What key characteristics does Verbeke list for these core competences?
Difficult to imitate
Broadly used in variety markets
Make a contribution to customer needs
Large effect on firm’s present and future performance if lose this competence
9. What critique does Verbeke have on the concept of core competences?
Overestimate the role of strategic management, underestimate the role of host country