But isn't the idiosyncratic one part of a firms code of conduct and therefore not an actual barrier since its limited to one firm? idiosyncratic risk is also firm specific risk, hence i figured that this one is also for individual firms
But doesnt infant industry tariff means that competitors in that industry wanting to engage with that country have to pay tariffs, to make it fair for the incumbent firms, therefore it is a tariff barrier.?
assertive and decisive behaviour (or also leadership style) is a characteristic for a masculine society. The missing compassion also underlines that fact since compassion is a characteristic for feminine societies :))
yea true... But in the book (p. 470) it says that expat assignments are quite expensive for employers, "such that many MNEs have moved to shorter assignments and non-traditional forms of expatriation, such as contract work, commuter assignments and virtual teams"
It was about reducing tariffs so yeah kinda positive, but reducing tariffs is good for global companies and bad for local companies because of more competition so could also be a risk. I would go for D
I would argue that the infant industry argument is an argument against free trade but not a non-tarriff barrier as it would induce a tariff to protect the specified industries. On the other hand an idiosyncratic health and safety standards would imply that some product are prohibited which is a barrier to entry whithout any tariff.
What exactly is your question? :-)
D is the right answer because, as you already said, it's a measure taken by the government and not by a company - all the other options can be used by a company to reduce their exposure to exchange risk!
In the table in the book (p. 370 in 1st edition) it states that there are integration related risk for full acquisitions!
With integration they mean here the integration into the existing company, so any type that involves another, already existing, company has integration risks :-)
True, it's quite tricky but resource endowments are only one out of 4 factors of the National competitive advantage !
The Factor Endowment theory on it's own is part of the comparative advantage which is a classical trade theory.
That's why I indicated A or D because D explicitly mentions "organizational"
However, following my understanding, you can write down at least structures and routines which makes them explicit and not tacit!
I would argue that the right answer is A since the definition of the LME is "System of coordination primarily through MARKET SIGNALS". Moreover, it is not C because companies have more opportunity to rise share since they are mostly financed by them
In the book (in the text) it says "In a liberal market economy (LME), the coordination happens predominantly by companies reacting to price signals of the market.", that's why I thought A is correct
But I get your point!
They ask which statement is incorrect and Answer B gives the correct definition - so the only incorrect statement should be C then: A liberal market economy is superior to a coordinated market economy in generating equitable prosperity :)