Author Question: According to the A.T. Kearney Foreign Direct Investment Confidence Index, investors have the highest ... (Read 83 times)

kaid0807 · **on:** Jul 7, 2018

According to the A.T. Kearney Foreign Direct Investment Confidence Index, investors have the highest confidence in which of the following countries?

A) Malaysia and Brazil
B) Canada and France
C) Japan and Canada
D) China and India

Question 2

What is the relationship between the five-forces model and a firm's international business strategy? Provide examples to illustrate your answer.

What will be an ideal response?

cuttiesgirl16 · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

D

Answer to Question 2

The five-forces model maps the relationship among companies within an industry, highlighting how competitors, new entrants, suppliers, buyers, and substitute products affect profitability. It holds that firm performance is a function of its strategy, which is determined by industry factors that shape the corresponding pattern of competition. For example, an industry with few entry barriers, lots of accessible buyers, and an expanding supply of low-cost, powerful technologies tends to have many firms competing for profits. Think of, for example, cell phones, e-commerce, financial services, or entertainment. Conversely, an industry with high entry barriers, steep capital requirements, and extreme research and development standards tends to have few firms competing for profits. Think of, for example, the pharmaceutical, energy, aircraft, or automobile industries. In both types, the prevailing industry structure shapes an MNE's choices regarding research and innovation, product strategy, plant investment, pricing behavior, among others. These choices ultimately influence its performance.