1. What is a firm specific advantage?
Firm specific advantage (FSA) is a specific value of firm it has which can have competitive advantages in the market places. Consequently, combination of unique resources, routines and recombination skills is FSA.
2. What is Honda’s FSA?
Rising value of Yen against US dollar which escalate the costs of exporting cards to the US and rising prices of oil enlarged costs of Honda’s manufacture.
3. What basic but important distinction does Verbeke make?
Non-transferable (location-bound) firm specific advantage and internationally transferable FSA which is non-location bound.
4. Why are some FSAs location bound?
Firstly, connection between stand-alone resources and location advantages make dominant market share in home market which is immobile. Secondly, it can be complex with the capability of recombination and limited to foreign markets to protect their privilege, knowledge and reputational resources
5. What does that mean “location bound”?
Location bound is the situation when the firm is not easy to transfer to international markets with firm specific advantages.
6. Can you give an example?
Japanese company Kao had ability to getting information through customers’ shopping habits, but failed to build a comprehensive distribution system to extend their market to Europe and America therefore Kao has not been capable to success like domestic market.
7. What part of Honda’s FSAs are location bound?
Honda had routine of Reliable management system with highly skilled labour and reliable supplier which provides raw materials for product.
8. What is the broader question that the field of International Business (IB) is concerned with?
Field or International Business is concerned to succeed in extending into foreign countries.
9. What does Verbeke mean when he talks about unique resources?
Unique resources are critical to achieving success in marketplaces to establish brand value and competitive advantages.
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