Purchase Solution

Journal of International Business Studies,

Not what you're looking for?

Ask Custom Question

Review this article:

Peng, M.W., Wang, D.Y.L. & Jiang, Y. (2008) â??An institution-based view of international business strategy: A focus on emerging economies?, Journal of International Business Studies, 39 (5), July/August, pp. 920-936.

Purchase this Solution

Solution Summary

This solution provides assistance with an article review.

Solution Preview

An institution based view of global business involves paying attention to formal and
informal institutions, or rules of doing business. According to Peng, Wang & Yi Jian (2008),
doing business in both established and emerging global markets is increasingly focused on
playing by the rules. The challenge is in learning what those rules are, for the various
economies. Many firms fail to consider the views, beliefs and needs of customers in foreign
markets, when moving into the global arena. The authors use an example of activism in
India, against what they considered tainted Coca Cola and Pepsi Co. products. Additionally,
the concept of a free marketing and pricing strategies has confused Chinese manufacturers,
who fail to understand that their low cost strategy may be considered illegal or unfair in
the United States (Peng et al, 2008).

While the formal institutions of global markets consist of regulations within each
country, rather than just those of international trade agreements or world trade organizations,
Informal institutions can be just as important and may even take over, where formal
institutions are lacking. Rugman (2008) stresses the fact that firms must understand the rules
and those who are successful globally have been able to identify and respond to those rules,
whatever they may be. According to Rugman, the institution based view of global business
has gone as far as to take the place of market dynamics, in terms of importance in doing
business globally.

Market trends are important, but political and cultural views and the rules that come
about as a ...

Solution provided by:
Education
  • MEd, Jones International University
  • BSc, DeVry University
  • MPH, Walden University
Recent Feedback
  • "Thank you so much!"
  • "Great work"
  • "thanks for the information"
  • "Thanks for the information"
  • "Excellent Work, very well-written, clear and concise."
Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.