GENERAL KNOWLEDGE

GK

HUMAN RESOURCE MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
“They have less experience with environmental contexts in different countries, less power to withstand the demand of host governments, less reputation and financial resources as well as fewer resources for managing international operations” refers to Internalization of SME
A
True
B
False
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Some of the established theories on internationalization were the monopolistic advantage theory, the internalization theory, and the eclectic theory (paradigm) (Ruzzier, Hisrich & Antoncic, 2006). These three theories are the dominant approaches in traditional multinational enterprises studies.

Detailed explanation-2: -The Uppsala model predicts that change in a firm’s internationalization process occurs through (1) intermittent decision processes related to committing/not-committing resources and (2) changes in continuous knowledge development processes through learning, creating, and trust building.

Detailed explanation-3: -Internalization decisions address the share in capital that is chosen for entry, i.e., entry by a minority or majority joint venture or a fully-owned subsidiary. Internationalization decisions relate to investing a certain amount of capital at entry, i.e., entering by a smaller or larger subsidiary.

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