They Also Emphasize That Firms Initially Operate In Their

1. What are the characteristics of informal cognitive institutions and why are they of special significance to international business managers.

The development of the business environment has determined companies to develop innovative strategies in order to create competitive advantage. Some of them have identified the potential of developing markets in Asia, Africa, and Europe, and have expanded their business to such areas. These countries provide a large pool of cheap skilled workforce that can help these companies reduce their production costs, which leads to reduced prices intended to increase the number of customers. The economic development of these countries provides customers with increased incomes that can purchase companies' products and services.

Ownership advantages could be intangible assets like technology and information, managerial, marketing and entrepreneurial skills, organisational systems, access to intermediate or final goods markets, a production process, patent and blueprint. The ownership advantage includes some firm specific valuable market power or cost advantage on the firm sufficient to outweigh the disadvantages of doing business abroad. They are closely related to the technological and innovative capabilities and the economic development levels of source countries.

The superimposing factor that gives South Africa such an advantage over other prospective African business environments is that it possesses of a very powerful and sophisticated vantage-point geographically. South Africa is strategically located for manufacturing and exportation into several regions globally and can be an unmitigated platform for MNC’s who may be interested in a venture within this region. The important advantages include regional competitiveness, combined with reduced operational costs and a significantly prominent market access (Safrica.info, 2011).

In support of their argument Peng, Wang & Jiang (2008) used four cases to illustrate the absolute importance of institutions in international business. These are (1) antidumping as entry barriers, (2) competing in and out of India, (3) growing the firm in China, and (4) governing the corporation in emerging economies

Democracy is defined as a(n) ____ in which citizens elect representatives to govern the country on their behalf.

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

Nаtionаl prоsperity is creаted, not inherited. It does not grоw out of a country’s natural endowments, its lаbor pool, its interest rates, or its currency’s value. A nation’s cоmpetitiveness depends on the capacity of its industry to innоvate and upgrade. Cоmpanies gain advantage against the world’s best cоmpetitors because of pressure and chаllenge. Thеy benefit from having strong domestic rivals, аggressive hоme-based suppliers, and demаnding local custоmers (Harvard Business Review, The Competitive Advantage Of Nations, Michael E. Porter). The Nаtional Competitive Advantage is basically an evaluation of hоw competitively a nation participates in international markets. Porter offers a diamond-shaped diagram to outline the frаmework of 4 key

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts

Larson inc. should make collaboration with other local firms, so that share of local ownership will increase and local firms will help company in various business aspects in Nigeria, also company should change his marketing strategy.

Thus, among all these theories, our thesis, we will mainly focus on location-specific advantages as according to the research conducted by Nayak and Rahul (2014,p.10), location advantages of different countries play a significant role in determining which country will be the recipient of FDI, Since the aim of the study is to analyze the impacts of the host country characteristics on FDI inflows, particularly that of Singapore and Hong Kong, we assume that firms already possess ownership and have internalized these advantages, making locational advantages very much country specific and are likely to vary according to changes in internal and external factors which will eventually influence a firm’s market potential and market risk. Thus, this renders the choice of locational advantage factors critical in influencing a country’s ability to attract

Alpha is the largest and most internationalised Nigerian manufacturing firms. The firm’s evolution, expansion and internationalisation is an example and a proof of a good government economic policy that propelled a visionary businessman with entrepreneurial abilities to build one of the largest…multinational firm in SSA (Interviewee Alpha_g1 September 2015). The firm’s domestic expansion had contributed to a large extent to the increased levels of industrial development and the economic growth of Nigeria in the past 15 years.

The potentials of capital market in Nigeria as a catalyst to economic and industrial development cannot be over emphasized. The capital market as an internal part of a country’s financial system operates at the long end of the system to mobilize resources for long term development and growth. Basically, the capital market accelerates growth by providing ,relatively long term capital - debt and equity finance – for government and corporate sector.

Nigerian National Petroleum Company is mainly responsible for the context of firm strategy and rivalry of the oil industry in Nigeria. The increase in the oil reserves and gas utilization is also achievable due to the introduction of various incentives by the government which includes a Memorandum of Understanding that will guarantee a profit margin of 2 US dollar per barrel. This had allowed an increase in

Further, the distribution showed that most indigenous Nigerian SMEs are not directly involved in the strategic sectors of the economy such as oil and gas exploration. The very huge financial requirement of oil and gas exploration, complex paper work and the inability of the indigenous SMEs to obtain funding from the banks and financial institutions as seen from earlier distribution tables, could possibly explain the situation.