Question Case

Question 1 (10 points)

a) Describe the global connectedness and work-related culture of your firm’s home country using Ghemawat’s and Hofstede’s findings, respectively.

• Note that this question consists of two parts, both of which need to be answered as completely as possible.

• In the exceptional case that your firm has multiple home countries, you only need to answer the question for one of these countries

b) What are your firm’s upstream and downstream FSAs that allow it to successfully operate internationally? Please explain your answer.

• Use convincing arguments, evidence from practice, and/or examples to make your points.

Question 2 (10 points)

a) Summarize the essence of Ricardo’s, Heckscher-Ohlin’s, and Porter’s theories of why countries specialize in certain economic activities. Then use one of these theories to explain why your firm may have decided to perform a certain type of upstream activity in a specific country.

• Note that this question consists of two parts, both of which need to be answered as precisely as possible.

• Regarding the second part of the question, you can choose any one of the three mentioned theories. Note that you need to use/apply the chosen theory, meaning that your answer should be based on the insights offered by that theory. Use the theory that you think is able to explain best why your firm located a certain type of upstream activity in a certain country. You are free to select any upstream activity performed by your firm in any country.

b) Describe the main similarities and differences between the different theories of FDI discussed in class. Then explain whether the internationalization trajectory of your firm is (roughly)