Inngangur að alþjóðaviðskiptum

Traveling abroadLets say you are a US student

You must plan for exchange rate values when you travel to Iceland. When the U.S dollar is strong, you can buy more ISK and enjoy a more affordable trip. If the U.S. dollar is weak, your trip will cost more because you can't buy as much foreign currency - ISK. Since the exchange rate varies, you might find the cost of your trip has changed since you started planning it

Domestic business

Commercial activities conducted within a nation or a commercial entity that conducts economic transactions *inside the borders* of its home nation. A domestic business typically has the advantage of only having to deal with its local currency, customs, culture, regulations and tax system. *Making, buying, and selling goods and service within a country * *Dæmi*: If you purchase a soft drink or milk made in your own country, you are participating in domestic business

6. Transnational network structure

Designed to help MNEs take advantage of global economies of scales while also being responsive to local customer demands. Relies on a network arrangement to link the various worldwide subsidiaries. Three components: Dispersed subunits Specialized operation Interdependent relationships.

Entry modes: Benefits and drawbacks

SME (small-to-medium enterprise) is a convenient term for segmenting businesses and other organizations that are somewhere between the "small office-home office" ( SOHO ) size and the larger enterprise . The European Union has defined an SME as a legally independent company with no more than 500 employees. __________________________ -*convenient*: hentugt, þægilegt -*Segmenting*: divide (something) into separate parts or sections. "the unemployed are segmented into two groups" -*enterprise*: fyrirtæki

Economic integration

The establishment of transnational rules and regulations that enhance economic trade and cooperation among countries.

FDI (Bein erlend fjárfesting)

Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. - Direct investment in activities that *control* & manage value creation in other countries - Minimum 10% ownership stake in a foreign-based company - An investor acquires 10% or more of the ordinry shares or voting shares of a foreign company ______________________________ -*establishing*: Koma á fót -*acquiring*: Öðlast -*assets*: Eignir -*controlling interest*: Vaxtastýring -*manage*: Stjórna -*ordinary*: Venjulegt?

Local / international business (global)

*1.International business* (IB) Organization based in a home country, with foreign country and regional links. Domestic and foreign customers. Sourching of products across national borders. *Dæmi*: If you buy shirt made in Thailand while shopping at your favourite store, you are involved in the global economy. - The purchase was made on your shopping trip and the garment was made halfway around the globe *2. Local business* Small local firm, local customers. Products sourced through local suppliers. Importance of personal relations for operations and reaching customers. ___________________________________________________________ -*Garment*: Fatnaður -*transactions*:

Three generic strategies

*Cost strategy*: A strategy that relies on low price through the pursuit of cost reductions. *Differentiation strategy*: A strategy directed toward creating something that is perceived as being unique. *Focus strategy*: A strategy that concentrates on a particular buyer group and segments.

Determinants and external variables

*Determinants* - factor conditions - demand conditions - related and supporting industries - firm strategy, structure, and rivalry. *External variables* - the role of chance - the role of government.

Economic systems

*Economic systems* - *Market-driven economy* An economy in which goods and services are allocated on the basis of consumer demand. *Centrally-determined economy* An economy in which goods and services are allocated based on a plan formulated by a committee that decides what is to be offered. *Mixed economies* Economic systems characterized by a combination of market-driven and centrally-driven planning.

*Kafli 6 - multinational strategies*

*Ethnocentric predisposition*: The tendency of a manager or multinational company to rely on the values and interests of the parent company in formulating and implementing the strategic plan. *Polycentric predisposition*: The tendency of a multinational to tailor its strategic plan to meet the needs of the local culture. *Regiocentric predisposition*: The tendency of a multinational to use a strategy that addresses both local and regional needs. *Geocentric predisposition*: The tendency of a multinational to construct its strategic plan with a global view of operations.

*Kafli 7 - International Financial Markets and Institutions*

*Exchange risk*: The risk of financial loss or gain due to an unexpected change in a currency's value. *Foreign exchange*: Any financial instrument that carries out payment from one currency to another. *Exchange rate*: The amount of one currency that can be obtained for another currency.

Interdependence

*Interdependence*: Mutual reliance between groups of actors: inviduals, firms, countries and regions. There is a tendency to mistake internationalization for globalization, and the key to differentiating the two is the issue of *interdependence* the relationship between two or more things where each one benefits from the other.

Kostir og Gallar MNE

*Kostir* - Transfer financial capital across countries (þó sé aðrar leiðir) - Profitable - *Control* *Gallar* - operation in 'unknown' environments - sunk costs: costs not easy to recover by exiting ___________________________________ - Sunk costs:

Government control of assets

*Privatization*: The process of selling government assets to private buyers. Divestiture: A process by which a government or business sells assets. *Contract management*: A process by which an organization (such as the government) transfers operating responsibility of an industry without transferring the legal title and ownership. *Nationalization*: A process by which the government takes control of business assets, with or without remuneration to the owners

Strategy formulation

*Strategy formulation*: The process of evaluating the enterprise's environment (opportunities) and its internal strengths (resources). *External environmental assessment*: information gathering; information assessment. *Internal environmental assessment*: physical resources and personnel competencies; value chain analysis.

Resources and capabilities

*Tangible resources* - Financial assets: cash, stocks, loans - Physical assets: land, buiidings, equipment, natural resources - Human capital: knowledge, skills, managerial know-how - Intellectual property: R&D knowledge, patents, copyrights, trademarks - Reputation: brand, corporate goodqill, formal and informal networks and relationship - Customer/Supplier porftfolio: exclusive contracts - Organizational culture: values, norms, tradition ______________________________________ -*tangible*: áþreifanleg -*managerial*: stjórnandi -*intellectual property*: -*goodqill*: viðskiptavild, velvilji -*portfolio* -*exclusive*: einkarétt

Regional money and capital markets

*The eurocurrency market*' A *eurodollar* is a dollar-denominated bank deposit located outside the United States. *The major sources of eurodollars include* companies with excess cash; European banks with foreign currency in excess of their current needs; foreign governments or business people who want to hold dollars outside the United States and reserves of countries such as Japan and some Organization of Petroleum Exporting Countries (OPECs) that have large trade surpluses.

WTO (World Trade organization)

*World Trade organization eða Alþjóðaviðskiptastofnunin* An international organization that deals with the rules of trade among member countries: one of its most important function is to act as a dispute-settlement mechanism. WTO agreements was negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. WTO er alþjóðastofnun sem hefur umsjón með mörgum samningum sem skilgreina þær reglur sem gilda um viðskipti aðildarríkjanna. Stofnunin var stofnuð 1. janúar árið 1995 og leysti af hólmi GATT-samningana og líkt og sá samningur hefur stofnunin það markmið að reyna að draga úr hömlum á milliríkjaviðskiptum. Höfuðstöðvar WTO eru í Genf í Sviss. Aðalframkvæmdastjóri er Pascal Lamy. Aðildarríkin eru 148, öll verða þau að fylgja grundvallarreglunni um bestukjaraviðskipti en í því felst að samskonar vörur frá mismunandi WTO-ríkjum eiga að fá sömu meðferð í innflutningslandinu (á þessu eru þó undantekningar). WTO er mikið gagnrýnd af andstæðingum hnattvæðingar.

Foreign investment - Erlend fjárfesting er einkum tvenns konar:

- *Foreign Direct Investment* (Bein erlend fjárfesting) Fjárfestingin er þá í eigu útlendinga og rekin af þeim Equity funds invested in other nations. It is different from portfolio (financial) investment in that FDI is undertaken by MNEs which exercise control of their foreign affiliates. -*Foreign Portfolio Investment (Óbein erlend fjárfesting Fjárfestingin fjármögnuð af útlendingum, en er rekin af innlendum aðilum ________________________________________________________ -*affiliates*:

indirect export og direct exports

- *Indirect export*: is the process of exporting through domestically based export intermediaries. The exporter has no control over its products in the foreign market. - *Direct exports*: a situation in which a company sells its products directly to customers in another country without using another person or organization to make arrangements for them, or a product that is sold in this way: The direct export of goods involves certain procedures, which must be adhered to. _____________________________ -*intermediaries*: milliliðir -*adhered*: fylgdi

GATT (General Agreement on tariffs and trade)

- A major trade agreement that was established to negotiate trade concessions among member countries and since superseded by the WTO agreements. - General Agreement on Tariffs and Trade (GATT) was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. - Gatt er almennur samningur um tolla og viðskipti. Þetta var fjölþjóðlegur samningur um viðskipti og tolla sem stóðu frá 1947 til 1994. Þangað til að WTO Alþjóðaviðskiptastofnun varð til. ________________________________________________________ -*concessions*: -*tarrifs*: -*quotas*:

Foreign direct investment flow

- Amount of FDI capital moving in a given period (oftast ár) in a certain direction - FDI inflow refers to inbound FDI moving into a country. - FDI outflow refers to outbound FDI moving out of a country. *Dæmi*: If firms from country A undertake 10 bill$ of FDI in country B, country B receives 10bill$ FDI inflows while country A generates 10bill$ FDI outflows. _____________________________________________________________ -*Capital*: Fjármagn (getur lika verið höfuðstóll) -*Inflow*: innstreymi -*Outflow*: Útstreymi -*Inbound*: Á heimaleið (traveling toward a particular place, especially when returning to the original point of departure) -*Undertake*: Taka að sér

The role of government

- Education policies - The regulation or deregulation of capital markets - The establishment of local product standards and regulations - The purchase of goods and services - Tax laws - Antitrust regulation - Subsidies

A typical internationalization process

- Firm license patents, trademarks or technology to a foreign company in exhange for a free or royalty - Firm sees a potential for extra sales by exporting and uses a local agent or distributor to enter a foreign market __________________________ - royalty: Þóknun, ríkdæmi

Why is Iceland the fastest growing OECD economy

- GDP growth reached 7.2% in 2016 *because*.. - Strong private demand - Surging investment - Booming tourism - Expansionary fiscal policy

Multinational corporation enterprise

- Multinational corporations (MNC) or enterprises (MNE) are organizations which own or control production of goods or services in countries other than the home country. - *An MNE is a firm that engages in FDI.* - *The MNE uses flows of FDI to finance or establish its foreign affiliates.* __________________________________________________________ *flokkaðir í tvö categories* - Trade (exports and imports) 50% trades í heiminum er unnið af 500 stærstu multinational fyrirtækjum - Foreign direct investment 80% af öllu FDI eru gerð af 500 stærstu multinational fyrirtækjum

The role of chance

- New inventions; - Political decisions by foreign governments; - Wars; - Significant shifts in world financial markets or exchange rates; - Discontinuities in input costs such as oil shocks; - Surges in world or regional demand; - Major technological breakthroughs.

The Viro framework

- Sjá mynd

2. Demand conditions

- The composition of demand in the home market as reflected by the various market niches that exist, buyer sophistication, and how well the needs of buyers in the home market precede those of buyers in other markets; - The size and growth rate of the home demand; - The ways through which domestic demand is  internationalized and pulls a nation's products and  services abroad.

3. Related and supporting industries

- The presence of internationally competitive supplier industries that create advantages in downstream industries through efficient, early or rapid access to cost-effective inputs; - Internationally competitive related industries that can coordinate and share activities in the value chain when competing or those that involve complementary products.

1. Factor Conditions

- The quantity, skills, and cost of the personnel; - The abundance, quality, accessibility, and cost of the nation's physical resources such as land, water, mineral deposits, timber, hydroelectric power sources, and fishing grounds; - The nation's stock of knowledge resources, including scientific, technical, and market knowledge that affect the quantity and quality of goods and services; - The amount and cost of capital resources that are available to finance industry; The type, quality, and user cost of the infrastructure, including the nation's transportation system, communications system, healthcare system, and other factors that directly affect the quality of life in the country.

*International business* o.fl.

- The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. - International business may also be called global business, international trade and foreign trade. *International trade* The exchange of goods and services across international borders. _____________________________________________________ - Transactions: Viðskipti/Framkvæmd

Integration versus national responsiveness

- The vertical axis measures the need for globalization, frequently called "economic integration." - The horizontal axis measures the need for corporations to be nationally responsive.

4. Firm strategy, structure, and rivalry

- The ways in which firms are managed and choose to compete; - The goals that companies seek to attain as well as the motivations of their employees and managers; - The amount of domestic rivalry and the creation and persistence of competitive advantage in the respective industry. _______________________________ - Affected like stockmarket, Costco, Lower price

Dynamic capabilities

- refers to the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. *Firms need 3 main types of dynamic capabilities in order to respond to changes or new challenges: * 1. quick learning; 2. the effective integration of new assets/processes; 3. the ability to modify or transform existing assets/processes. ____________________________________ -*integrate*: samþætta -*reconfigure*: endurskipuleggja -*competences*: hæfni, geta -*integration*: sameining -*modify*: breyta

The internationalization procress

- the process by which a company enters a foreign market 1. Entry modes - decide whether it will opt for non-equity or equity entry modes - avoid the risks of high commitment to unknown (foreign) markets (exports, contractual agreements, franchising agreements) 2. Equity mode Higher commitment to the foreign market and often require higher knowledge or experience ____________________________ -*non equity*: ekki eigið fé -*equity*: eigið fé -*contractual*: samningsbundin -*franchising*: einkavæðing? grant a franchise for the sale of (goods) or the operation of (a service).

Globalization

- the process by which businesses or other organizations develop international influence or start operating on an international scale. - The growing interdependence of locations and economic actors across countries and regions __+----------------- - *Afleiðingar* í mynd - *interdependence*:

Yfirlit

1. Introduction 2. Trends in innovation at the firm and country level 3. The resource-based view (RBV) and the VRIO framework 4. Dynamic capabilities 5. Connecting FSAs to CSAs 6. Systems of innovation 7. International dimensions of innovation 8. The location of innovation activities in the MNE

Yfirlit

1. Introduction 2. What is international business? 3. Globalization - Technology and innovation - for you to study at home - Socio-political developments - for you to study at home 4. What are institutions 5. Multinational enterprises 6. Foreign direct investment 7. The triad

Other examples of economic integration

1.*Andean Community* Economic union consisting of Bolivia, Colombia, Ecuador, Peru, & Venezuela. 2.*Mercosur* A free trade group that consists of Argentina, Brazil, Paraguay, & Uruguay. 3.*Asean* Founded by Indonesia, Malaysia, the Philippines, Singapore, & Thailand. 4.*FTAA* A free trade agreement of the Americas that has not yet been implemented.

Levels of economic integration

1.*Free Trade Area*: Barriers to trade (such as tariffs) among member countries are removed (e.g. NAFTA). 2.*Customs Union*: Tariff between member countries are eliminated & common trade policy toward non-member countries is established. 3.*Common Market*: Elimination of trade barriers among member countries, a common external trade policy and mobility of factors of production among member countries. 4.*Economic union*: A deep form of integration characterized by free movement of goods, services, and factors of production among member countries and full integration of economic policies. 5.*Political union*: An economic union in which there is full economic integration, unification of economic policies & a single government.

Economic systems

1.*Market-driven economy* - An economy in which goods and services are allocated on the basis of consumer demand. 2.*Centrally-determined economy* - An economy in which goods and services are allocated based on a plan formulated by a committee that decides what is to be offered. 3.*Mixed economies Economic* - systems characterized by a combination of market-driven and centrally-driven planning.

Government control of assets

1.*Privatization*: The process of selling government assets to private buyers. Divestiture: A process by which a government or business sells assets. Contract management: A process by which an organization (such as the government) transfers operating responsibility of an industry without transferring the legal title and ownership. 2.*Nationalization*: A process by which the government takes control of business assets, with or without remuneration to the owners

Protecting against exchange risk...

1.*Risk avoidance* : Avoid foreign currency transactions. 2.*Risk adaptation* : This strategy includes all methods of "hedging" against exchange rate changes. 3.*Risk transfer* : The use of an insurance contract or guarantee that transfers the exchange risk to the insurer or guarantor. 4.*Diversification*: Spreading assets and liabilities across several currencies. Choose a portfolio of currencies

Yfirlit

1FDI 2- Firm-specific assets (FSAs) 3- 3 types of O advantages 4 Location advantages/country-specific assets 5- Putting it all together: the eclectic paradigm 6- Internationalization process 7- Entry modes 8- Join venture

FDI from a small domestic base

> Changes in the economy between1992-1998. > Iceland has the smallest economy within the OECD nations. > Iceland led the World Investment Report (WIR) list 2004, 2005 and 2006 and ranked nr 2 in 2007. - Invested almost 60% of its GDP in FDI in 2006 > In 2005, approximately 75% of the revenue was generated abroad. > Icelandic firms started their international commitments with foreign acquisitions or greenfield investments > Their main motives were access to new markets and strategic asset seeking. > There seems to have been a pattern going on before the crisis > In the years leading up to the crisis companies were growing like never before > The growth was highly leveraged and company stocks were used as payment. > The Icelandic coalition government collapsed on January 26, 2009 due to a disagreement between the main coalition parties over how to deal with the aftermath of the total economic collapse of the country.

Double Diamond

???

5. Mixed structure

A hybrid organization design that combines structural arrangements in a way that best meets the needs of the enterprise.

Strategic cluster

A network of businesses and supporting activities located in a specific region, where the flagship firms compete globally and the supporting activities are home-based, although some of them can be foreign owned *Cluster in Iceland* - Clusters and cooperation on economic development have been a rich part of the policy of the Icelandic government in recent years in the field of innovation and regional development. - An emphasis has been placed on cluster development in rural areas and outside of the capital. - The aim is to strengthen the competitiveness of the countryside, focusing on innovation and collaboration among research institutions, universities, municipalities and government

Strategic cluster

A network of businesses and supporting activities located in a specific region, where the flagship firms compete globally and the supporting activities are home-based, although some of them can be foreign owned.

1. Global product structure

An arrangement in which *domestic division*s are given worldwide *responsibility* for product groups

4. Matrix structure

An organizational arrangement that *blends two organizational responsibilities* such as functional (3) and product (1) structures or regional and product structures.

Global organization structures

As MNEs generate more and more revenues from their overseas operations, their strategies and the structures used to implement these strategies become more global in focus. *There are six basic types of global structures.* 1. Global product structure 2. Global area structure 3. Global functional structure 4. Matrix structure 5. Mixed structure 6. Transnational network structure

3. Global functional structure

Builds around the *basic tasks* of the organization. For example, in manufacturing firms, production, marketing, and finance are the three primary functions that must be carried out for the enterprise to survive. ________________________________________________________________________ *Skilgreiningar* - *Manufacturing* - *Primary*: - *Functions*:

Born Globals

Business organization that seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries __________________________ -*derive*: öðlast -*outputs*: framleiðsla

Joint venture (strategía)

Common use of JV is to partner up with a local business to enter a foreign market - *Business arrangement*: in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task (both participants are responsible for profits, losses and cost) _____________________________________ - pool their:

*Kafli 10*

Corporate strategy and national competitiveness

Firm-specific assets/ownership advantages

Firm-specific assets (FSAs): A unique capability proprietary to the organization. It may be built upon product or process technology, marketing or distributional skills. ________________________________________ -*capability*: færni, geta -*proprietary*: eigin -*distributional*: dreifing

Strategic management process

Four major functions 1. Strategy - Formulation 2. Strategy - Implementation 3. Evaluation 4. Control of - Operations _____________________________ -*formulation*: samsetning -*implementation*: framkvæmd

*Kafli 2-*

General frameworks in International Business

Globalization

Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services. Process of intergration among countries around the world with a vision of single market entity ________________________________________________________ -*integration*: Sameining/Samþætting -*entity*: Eining -*interconnected*: -*trade*:

Foreign direct investment stocks

Measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year.

*Kafli 1*

Introduction to International Business

Foreign direct investment stocks

Measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year. ________________________ -*Quarter*: Fjórðungur: 1/4

International dimensions of innovation

MNEs manage business operations across a range of country contexts, each of which represents a different set of opportunities for innovation. ________________________________ -*contexts*: samhengi -*innovation*: nýsköpun

*Kafli 3*

Multinational Enterprises, Innovation, & Competitiveness

Examining the 5 forces that determine industry competitiveness

One of the most common approaches to make an overall evaluation is based on the five forces that determine industry competitiveness: - buyers - suppliers - potential new entrants to the industry - the availability of substitute goods and services - rivalry among the competitors.

The single diamond

One way for government to accomplish that goal is to stimulate competition between domestic companies by establishing and enforcing anti-trust laws. The Porter Diamond is also referred to as "Porter's Diamond" or the "Diamond Model". The Porter Diamond, properly referred to as the Porter Diamond Theory of National Advantage, is a model that is designed to help understand the competitive advantage nations or groups possess due to certain factors available to them, and to explain how governments can act as catalysts to improve a country's position in a globally competitive economic environment. ________________________________________-*antri trust laws*: -*competititve advantage* -*factors*: þættir -*catalysts*: hvatar

*Kafli 5*

Organizing multinational Strategy - Chapter 8 and 9

Political ideologies & economics

Political systems 1.*Democracy*: A system of government in which the people, either directly or through their elected officials, decide what is to be done. 2.*Totalitarianism*: A system of government in which one individual or political party maintains complete control and either refuses to recognize other parties or suppresses them. 1. As political systems change *>* 2. This means that changes in a country´s political system often cause changes in its economic system *>* 3. Changes in politics affects the business environment

2. Global area structure

Primary operational responsibility is delegated to *area managers*, each of whom is responsible for a *specific geographic region*.

Institutions

Sets of common habits, routines, established practices, rules, or laws that regulate the interaction between individuals and groups. *Rules of institutions* -*Formal*: legal codes, laws, can exists within a firm, codes of conduct, accounting, finacial regulations: (GATT, WTO) -*Informal*: Not always in form of written instruction, more like tradition bruh

System of innovation

Systems of innovation (SI) stress the importance of systemic interactions between the various components of inventions, research, technical change, learning, & innovation. ______________________________ -*innovation*: nýsköpun -*components*: partur, hluti

*Kafli 5*

The Environment of International Business

FSA

The FSA and CSA framework is related to the issues of organization structure: A centralized & hierarchical structure is usually followed by firms in #1 pursuing economic integration. In #4, the strategy of national responsiveness may require a decentralized organization structure. In #3, it may be necessary to combine the advantages of both a centralized & decentralized organization structure.

LIBOR

The base interest rate paid on deposits among banks in the eurocurrency market is called Libor LIBOR is determined by the supply and demand forfunds in the euromarket for each currency.

Foreign exchange markets

The foreign exchange market is a mechanism through which financial instruments (cash, cheques, or drafts, wire transfers telephone transfers and contracts to sell or buy currency in the future) that are denominated in different currencies can be transacted.

Coordination

The structure is designed to answer the question: What is to be done? The organizational processes— decision making, communicating, and controlling—help to make the structure work efficiently. *Decision making*: The process of choosing from among alternatives. *Communication*: The process of transferring meanings from sender to receiver. *Controlling*: The process of determining that everything goes according to plan.

The Viro Framework

Theoretical model based on the resource-based view (RBV) that helps to understand the sources of sustainable competititve advantages - Do a firm's resources and capabilities add value by enabling it to exploit opportunities and/or neutralize threats? *(Valuable)* How many competing firms already possess these valuable resources and capabilities? *(Rare)* Do firms without a resource or capability face a cost disadvantage in obtaining it compared to firms that already possess it? *(Imperfectly Imitable)* Is a firm organized to exploit the full competitive potential of its resources and capabilities? *(properly organized)*

Forms of international business

There are many forms of international business transactions. The ,,Classical'' view has been international trade, in the form of *exporting* and *importing* 1. *Export*: Goods and services produced by a firm in one country and then sent to another country 2. *Imports*: Goods and services produced in one country and bought in by another country.

3 Types of O

There are three types of O advantages: +*Asset-type* (physical assets, proprietary knowledge content, whether embodied in intellectual, property, or in technical personnel). +*Transaction-type* (ability to generate rent by the use of superior intra-firm hierarchies, both intra-firm, and between firms and markets). +*Recombinant-type* (ability to recombine the firms own assets with other internal and external assets). _________________________ -*Proprietary*: Eigin (relating to an owner or ownership. "the company has a proprietary right to the property") -*Content*: Innihald -*Embodied*: -*Personnel*: Starfsmenn -*Intra*: Innan -*Firm hierarchies*: Fyrirtækja stigveldi -*Recombinant*: endurtekning -*Transaction*: viðskipti/framkvæmd

Connecting FSAs to CSAs

WTF?

Eurobonds

are financial instruments that are typically underwritten by a syndicate of banks from different countries and are sold in countries other than the ones in which their currency is denominated.

Ideology

is a set of integrated beliefs, theories, and doctrines that helps direct the actions of a society. Political ideology is almost always intertwined with economic philosophy

Strategy implementation

is the process of attaining goals by using the organizational structure to execute the formulated strategy properly. - location - ownership decision - strategic alliance - international joint venture - marketing, manufacturing, finance, procurement, technology, human resources

Purchasing power parity is an economic theory

that states *residents of one country should be able to buy the goods and services at the same price as inhabitants of any other nation* over time. International trade allows people to shop around for the best price. Given enough time, everyone's purchasing power will become equal, or reach parity PPP depends on the law of one price. That states that once the difference in exchange rates is accounted for, then everything would cost the same

The Traid

the traid nations dominate the world trade and investment, and a great deal of this activity takes place both among and within triad nations - The United States has the largest economy in the world - The United States is part of the North *American Free Trade Agreement (NAFTA)* with Canada and Mexico. - The United States economy is significantly larger than that of its two trading partners and is therefore a triad member on its own. - The traid: *Japan* Japan is the second largest economy in Asia. The nominal GDP of Japan is $4.84 trillion (est. 2017) Japan is the 4th largest importer and 4th largest exporter in the world.