gb6 - The Unified Framework Throughout the textbook, Peng...

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The Unified Framework Throughout the textbook, Peng focuses his discussion of global business on one question: “What determines the success and failure of firms around the globe?” To answer this question, he considers two points of view: 1. The institution-based view: This view holds that institutions—the “rules of the game”—determine a firm’s success or failure. 2. The resource-based view: This view holds that a firm’s success of failure depends on its access to certain resources and capabilities, which give it a competitive advantage. As you might imagine, neither of these views fully explain the success or failure of firms around the globe. Rather, both of these viewpoints have some merit. Events that have occurred since 2008 have emphasized the validity of the unified framework. Consider the following: 1. Government bailouts: As we will discuss, all of the world’s economies are “mixed,” meaning that there is no pure “command” economy, and there is no pure
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gb6 - The Unified Framework Throughout the textbook, Peng...

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