Read the summary and the most important questions on lecture 2

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• Key features Uppsala Model

  (A) distance can mean one of two things
  (B) commitments should be increased slowly
  (C) commitments are reversible.

• Born Global originated by...

  McKinsey in 1993

• What is the Born Global concept?

  due to increased information, everyone – even the smallest players – has access to information about the export market, and can begin from its inception, without having to build a domestic base. (Information, Contacts, Knowledge, Globalisation)

• What is a business cluster ?

  A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field (e.g. Silicon Valley). Clusters form because of spillovers or network effects.

• When is a country attractive?

  Theoretically, a country will be attractive to a foreign investor if, in investing in that country, the investor gets a return that is equal to or higher than their risk-adjusted weighed cost of capital.

• country attractiveness framework - three major components

  1. country risks
  2. market opportunities
  3. industry opportunities

• Country risks ( assessing country attractiveness)

  a. political risks
  b. economic risks
  c. competitive risks
  d. operational risks

• Political risks (country risks)

  i. Shareholder Exposure: asset destruction, spoliation, and immobility
  ii. Employee Exposure: kidnapping, harassment
  iii. Operational Exposure: market disruption, labor unrest

• Economic risks (country risks)

  i. Economic Growth
  ii. Variability
  iii. Inflation
  iv. Input Costs
  v. Exchange Rates

• Competitive risks (country risks)

  business logics (cartels, corruption, networks)