Template:SFR:Today's Featured Article3/2014 - Revision history

Paulreed at 18:18, 10 December 2015

2015-12-10T18:18:45Z

← Older revision		Revision as of 13:18, 10 December 2015
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	<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>		<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>

	~~See also [[Firm-Specific Advantage]], [[Porter's Diamond of National Advantage]] and [[Strategic Advantage#Sources of Strategic Advantage\|Sources of Strategic Advantage]]~~		==Introduction==

	~~A (Multi~~-~~National Enterprise (MNE) operating a plant~~ in ~~a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to~~		Pompeii has a reputation for lasciviousness and was often a by-word for sex and prostitution but in reality the people were no more promiscuous than other roman towns and cities and the erotic artwork discovered in Pompeii were sources of art, titillation, fertility and ''lucky charms'' as well as some being deliberately explicit.
	~~(i) cultural, legal, institutional~~ and ~~language differences;~~
	~~(ii) a lack of knowledge about local market conditions;~~ and~~/or~~
	~~(iii)~~ the ~~increased expense~~ of ~~communicating~~ and ~~operating at a distance~~.

	~~Therefore, if a foreign firm is~~ to ~~be successful in another country, it must have some kind~~ of ~~an advantage that overcomes the costs~~ of ~~operating in a foreign market. Either~~ the ~~firm must be able~~ to ~~earn higher revenues, for the same costs,~~ or ~~have lower costs, for~~ the ~~same revenues, than comparable domestic firms~~.		==Depictions of Sex==
			The many phallus symbols embedded in to the walls of walls of the city thoroughfares have been crudely analyzed as clever directional arrows pointing to Brothels or marking the brothels themselves. It is more likely that they symbolized both male dominance and prosperity. For instance the giant phallus found outside a bakery is accompanied by the slogan above it
	~~PROFIT = TOTAL REVENUES - TOTAL COSTS - COST OF OPERATING AT A DISTANCE~~
	~~[[File:Firm_Ctry_adv~~.~~jpg\|Country/Firm Specific Advantage Matrix\|thumb]]~~

	Since only foreign firms have to pay "costs of foreignness", they must have other ways to earn either higher revenues or have lower costs in order to able to stay in business. So, if the MNE is to be profitable abroad it must have some advantages not shared by its competitors. These advantages must be (at least partly) specific to the firm and readily transferable within the firm and between countries. These advantages are called ownership or firm specific advantages (FSAs) or core competencies. The firm owns this advantage: the firm has a monopoly over its FSAs and can exploit them abroad, resulting in a higher marginal return or lower marginal cost than its competitors, and thus in more profit. These advantages are internal to a specific firm. They may be location bound advantages (i.e. related to the home country, such as monopoly control over a local resource) or non-location bound (e.g. technology, economies of scale and scope from simply being of large size).		''Good fortune dwells here''

			[[File:phallic_symbol.jpg\|200px\|Phallic Symbol of Prosperity?]]

	[[~~Country~~-~~Specific Advantage~~\|Read More]]
			[[Pompeii - Eroticism and Prostitution\|Read More]]

Paulreed: Paulreed moved page Template:SFR:Today's Featured Article3/2013 to Template:SFR:Today's Featured Article3/2014

2014-01-03T22:09:14Z

Paulreed moved page Template:SFR:Today's Featured Article3/2013 to Template:SFR:Today's Featured Article3/2014

← Older revision	Revision as of 17:09, 3 January 2014
(No difference)

Paulreed at 18:14, 10 January 2013

2013-01-10T18:14:34Z

← Older revision		Revision as of 13:14, 10 January 2013
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	Therefore, if a foreign firm is to be successful in another country, it must have some kind of an advantage that overcomes the costs of operating in a foreign market. Either the firm must be able to earn higher revenues, for the same costs, or have lower costs, for the same revenues, than comparable domestic firms.		Therefore, if a foreign firm is to be successful in another country, it must have some kind of an advantage that overcomes the costs of operating in a foreign market. Either the firm must be able to earn higher revenues, for the same costs, or have lower costs, for the same revenues, than comparable domestic firms.

	PROFIT = TOTAL REVENUES - TOTAL COSTS - COST OF OPERATING AT A DISTANCE		PROFIT = TOTAL REVENUES - TOTAL COSTS - COST OF OPERATING AT A DISTANCE
			[[File:Firm_Ctry_adv.jpg\|Country/Firm Specific Advantage Matrix\|thumb]]

	Since only foreign firms have to pay "costs of foreignness", they must have other ways to earn either higher revenues or have lower costs in order to able to stay in business. So, if the MNE is to be profitable abroad it must have some advantages not shared by its competitors. These advantages must be (at least partly) specific to the firm and readily transferable within the firm and between countries. These advantages are called ownership or firm specific advantages (FSAs) or core competencies. The firm owns this advantage: the firm has a monopoly over its FSAs and can exploit them abroad, resulting in a higher marginal return or lower marginal cost than its competitors, and thus in more profit. These advantages are internal to a specific firm. They may be location bound advantages (i.e. related to the home country, such as monopoly control over a local resource) or non-location bound (e.g. technology, economies of scale and scope from simply being of large size).		Since only foreign firms have to pay "costs of foreignness", they must have other ways to earn either higher revenues or have lower costs in order to able to stay in business. So, if the MNE is to be profitable abroad it must have some advantages not shared by its competitors. These advantages must be (at least partly) specific to the firm and readily transferable within the firm and between countries. These advantages are called ownership or firm specific advantages (FSAs) or core competencies. The firm owns this advantage: the firm has a monopoly over its FSAs and can exploit them abroad, resulting in a higher marginal return or lower marginal cost than its competitors, and thus in more profit. These advantages are internal to a specific firm. They may be location bound advantages (i.e. related to the home country, such as monopoly control over a local resource) or non-location bound (e.g. technology, economies of scale and scope from simply being of large size).

	~~[[File:Firm_Ctry_adv.jpg\|Country/Firm Specific Advantage Matrix\|thumb]]~~


	[[Country-Specific Advantage\|Read More]]		[[Country-Specific Advantage\|Read More]]

Paulreed at 18:10, 10 January 2013

2013-01-10T18:10:08Z

← Older revision		Revision as of 13:10, 10 January 2013
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	<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>		<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>



	See also [[Firm-Specific Advantage]], [[Porter's Diamond of National Advantage]] and [[Strategic Advantage#Sources of Strategic Advantage\|Sources of Strategic Advantage]]		See also [[Firm-Specific Advantage]], [[Porter's Diamond of National Advantage]] and [[Strategic Advantage#Sources of Strategic Advantage\|Sources of Strategic Advantage]]
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	[[File:Firm_Ctry_adv.jpg\|Country/Firm Specific Advantage Matrix\|thumb]]		[[File:Firm_Ctry_adv.jpg\|Country/Firm Specific Advantage Matrix\|thumb]]

	~~The a list below provides the various types of FSAs which the MNE can possess. There are three basic types of ownership advantages for a multinational enterprise. These include:~~

	*Knowledge/technology, broadly defined so as to include all forms of innovation activities.
	*Economies of large size (advantages of common governance) such as economies of scale and scope, economies of learning, broader access to financial capital throughout the MNE organization, and advantages from international diversification of assets and risks; and monopolistic advantages that accrue to the MNE in the form of privileged access to input and output markets through patent rights, ownership of scarce natural resources, and the like.
	*Some of these O(rganizational) advantages can be found with de novo firms (i.e. first time overseas investments), others come from being an established affiliate in a large, far flung multinational enterprise. Economies of common governance clearly belong to the latter category. Therefore FSAs can change over time and will vary with the age and experience of the multinational.

	[[Country-Specific Advantage\|Read More]]		[[Country-Specific Advantage\|Read More]]

Paulreed at 18:08, 10 January 2013

2013-01-10T18:08:50Z

← Older revision		Revision as of 13:08, 10 January 2013
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	Country-Specific Advantage		<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>



	See also [[Firm-Specific Advantage]]		See also [[Firm-Specific Advantage]], [[Porter's Diamond of National Advantage]] and [[Strategic Advantage#Sources of Strategic Advantage\|Sources of Strategic Advantage]]

	A (Multi-National Enterprise (MNE) operating a plant in a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to		A (Multi-National Enterprise (MNE) operating a plant in a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to

Paulreed at 18:06, 10 January 2013

2013-01-10T18:06:51Z

← Older revision		Revision as of 13:06, 10 January 2013
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			See also [[Firm-Specific Advantage]]

	~~Jump to: navigation, search~~


	See also Firm-Specific Advantage

	A (Multi-National Enterprise (MNE) operating a plant in a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to		A (Multi-National Enterprise (MNE) operating a plant in a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to
	(i) cultural, legal, institutional and language differences;		(i) cultural, legal, institutional and language differences;
	(ii) a lack of knowledge about local market conditions; and/or		(ii) a lack of knowledge about local market conditions; and/or
	(iii) the increased expense of communicating and operating at a distance.		(iii) the increased expense of communicating and operating at a distance.
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	The a list below provides the various types of FSAs which the MNE can possess. There are three basic types of ownership advantages for a multinational enterprise. These include:		The a list below provides the various types of FSAs which the MNE can possess. There are three basic types of ownership advantages for a multinational enterprise. These include:
	Knowledge/technology, broadly defined so as to include all forms of innovation activities.
	Economies of large size (advantages of common governance) such as economies of scale and scope, economies of learning, broader access to financial capital throughout the MNE organization, and advantages from international diversification of assets and risks; and monopolistic advantages that accrue to the MNE in the form of privileged access to input and output markets through patent rights, ownership of scarce natural resources, and the like.		*Knowledge/technology, broadly defined so as to include all forms of innovation activities.
	Some of these O(rganizational) advantages can be found with de novo firms (i.e. first time overseas investments), others come from being an established affiliate in a large, far flung multinational enterprise. Economies of common governance clearly belong to the latter category. Therefore FSAs can change over time and will vary with the age and experience of the multinational.		*Economies of large size (advantages of common governance) such as economies of scale and scope, economies of learning, broader access to financial capital throughout the MNE organization, and advantages from international diversification of assets and risks; and monopolistic advantages that accrue to the MNE in the form of privileged access to input and output markets through patent rights, ownership of scarce natural resources, and the like.
			*Some of these O(rganizational) advantages can be found with de novo firms (i.e. first time overseas investments), others come from being an established affiliate in a large, far flung multinational enterprise. Economies of common governance clearly belong to the latter category. Therefore FSAs can change over time and will vary with the age and experience of the multinational.

	[[Country-Specific Advantage\|Read More]]		[[Country-Specific Advantage\|Read More]]

Paulreed: Created page with "Country-Specific Advantage Jump to: navigation, search See also Firm-Specific Advantage A (Multi-National Enterprise (MNE) operating a plant in a foreign country is ..."

2013-01-10T18:05:49Z

Created page with "Country-Specific Advantage Jump to: navigation, search See also Firm-Specific Advantage A (Multi-National Enterprise (MNE) operating a plant in a foreign country is ..."

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Country-Specific Advantage

Jump to: navigation, search

See also Firm-Specific Advantage

A (Multi-National Enterprise (MNE) operating a plant in a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to
(i) cultural, legal, institutional and language differences;
(ii) a lack of knowledge about local market conditions; and/or
(iii) the increased expense of communicating and operating at a distance.

Therefore, if a foreign firm is to be successful in another country, it must have some kind of an advantage that overcomes the costs of operating in a foreign market. Either the firm must be able to earn higher revenues, for the same costs, or have lower costs, for the same revenues, than comparable domestic firms.

PROFIT = TOTAL REVENUES - TOTAL COSTS - COST OF OPERATING AT A DISTANCE

Since only foreign firms have to pay "costs of foreignness", they must have other ways to earn either higher revenues or have lower costs in order to able to stay in business. So, if the MNE is to be profitable abroad it must have some advantages not shared by its competitors. These advantages must be (at least partly) specific to the firm and readily transferable within the firm and between countries. These advantages are called ownership or firm specific advantages (FSAs) or core competencies. The firm owns this advantage: the firm has a monopoly over its FSAs and can exploit them abroad, resulting in a higher marginal return or lower marginal cost than its competitors, and thus in more profit. These advantages are internal to a specific firm. They may be location bound advantages (i.e. related to the home country, such as monopoly control over a local resource) or non-location bound (e.g. technology, economies of scale and scope from simply being of large size).

[[File:Firm_Ctry_adv.jpg|Country/Firm Specific Advantage Matrix|thumb]]

The a list below provides the various types of FSAs which the MNE can possess. There are three basic types of ownership advantages for a multinational enterprise. These include:
Knowledge/technology, broadly defined so as to include all forms of innovation activities.
Economies of large size (advantages of common governance) such as economies of scale and scope, economies of learning, broader access to financial capital throughout the MNE organization, and advantages from international diversification of assets and risks; and monopolistic advantages that accrue to the MNE in the form of privileged access to input and output markets through patent rights, ownership of scarce natural resources, and the like.
Some of these O(rganizational) advantages can be found with de novo firms (i.e. first time overseas investments), others come from being an established affiliate in a large, far flung multinational enterprise. Economies of common governance clearly belong to the latter category. Therefore FSAs can change over time and will vary with the age and experience of the multinational.

[[Country-Specific Advantage|Read More]]