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Microsoft Corporation

1. From the perspective of globalization. Why do you think your specific firm went global?

Microsoft went global in order to gain access to new markets and customers, to diversify its income streams, to gain economies of scale, and to benefit from lower costs of production. By expanding into new markets, Microsoft was able to capture a larger share of the global market and increase its profits. By diversifying its income streams, Microsoft was able to reduce its risk and become more resilient to changing market conditions. By gaining economies of scale, Microsoft was able to produce its products more efficiently and cost-effectively. Lastly, by operating in countries with lower costs of production, Microsoft was able to reduce its overall production cost and increase its profitability

2. What foreign direct investment did the company embark on?

Microsoft has made several investments in foreign direct investment (FDI) in recent years. In 2019, Microsoft invested in the Chinese technology company JD.com, in the Indian cloud-based software company Zoomcar, and in the Japanese online gaming platform Line. Microsoft also invested in the Israeli artificial intelligence company Cortica, the German cloud-based business software provider SAP, and the Chinese online education platform Koolearn. Microsoft has also acquired major companies such as GitHub, LinkedIn, and Mojang, which all have a presence in international markets.

3. Please tell me of an emerging market which your company has entered. What was the reason for entering that market? Was it the right decision?

Microsoft entered the Indian market in 2017. The company saw the potential of India's large population and rapidly growing economy, and wanted to capitalize on the opportunities that this presented. Microsoft also wanted to provide its products and services to the Indian population, as well as to tap into the country's talent pool. Microsoft's decision to enter the Indian market was the right one, as the company has seen significant growth in the country since then. Microsoft has become the leading cloud provider in India and the company's revenue from the country has grown significantly.

4. What role did formal and informal institutions play in the success of failure of the company?

Formal institutions such as government regulations, laws, and policies had a major role to play in Microsoft's success. For example, Microsoft was able to benefit from government regulations and laws that allowed it to operate in international markets, such as India. In addition, Microsoft was able to take advantage of policies and incentives offered by governments in certain countries in order to encourage the company to invest in and operate in those countries. On the other hand, informal institutions such as cultural norms and values also had a role to play in Microsoft's success. For example, Microsoft was able to successfully penetrate the Indian market by understanding and respecting the cultural norms and values

of the country.

5. Identify one specific international country they entered and describe the political system and how it impacted business operation.

Microsoft entered the Chinese market in 2003. The political system in China is a one-party socialist system, with the Chinese Communist Party (CCP) as the ruling party. This system has had an impact on Microsoft's business operations in China. For example, Microsoft has had to comply with the regulations and policies of the CCP in order to do business in the country, such as the requirement to provide source code for its products to the Chinese government. Microsoft has also had to partner with local Chinese companies in order to do business in the country (Dann & Haddow 2008). In addition, Microsoft has had to be mindful of the Chinese government's stance on censorship and has had to adjust its products to meet the government requirements

6. How did the laws of the above country protect intellectual property? Did your company have any

IP?

The laws in China protect intellectual property (IP) through various measures. These measures include copyright and patent laws, trademark protection laws, and trade secret laws. Microsoft has various IP in China, including patents, trademarks, copyrights, and trade secrets. Microsoft's IP in China is protected by the laws of the country, which are enforced by the Chinese government. In addition, Microsoft has implemented measures such as encryption and digital rights management to further protect its IP in China.

7. How did the culture of the above country change the way business was conducted by your MNE

The culture of China has had a significant impact on the way Microsoft conducts business in the country. For example, Microsoft has had to adjust its products and services to meet the needs and preferences of Chinese consumers. Microsoft has also had to be mindful of the cultural norms and values of the country in order to be successful in the Chinese market. Additionally, Microsoft has had to take into account the Chinese government's stance on censorship and has had to adjust its products and services accordingly.

8. Are there any ethical issues that arose due to cultural differences? If not, why werent there?

Microsoft has not encountered any major ethical issues due to cultural differences in the countries it operates in. Microsoft has taken a proactive approach to addressing ethical issues, such as by creating a code of conduct for its employees and by implementing measures to ensure compliance with local laws and regulations. Additionally, Microsoft has taken steps to ensure that its products and services respect the local culture and values of the countries it operates in. As a result, Microsoft has been able to successfully avoid any major ethical issues due to cultural differences.

9. What firm specific resources were available that made the company a success internationally? Consider VRIO framework and benchmarking here.

Microsoft's firm-specific resources that have enabled it to be successful internationally include its brand reputation, its technological capabilities, its extensive financial resources, its global reach, and its highly skilled workforce. Microsoft's brand reputation has enabled it to gain customer trust and loyalty globally, while its technological capabilities have enabled it to develop innovative products and services. Microsoft's extensive financial resources have enabled it to invest in international markets and to enter into strategic partnerships. Microsoft's global reach has enabled it to expand into new markets, while its highly skilled workforce has enabled it to develop and deliver products and services that meet customer needs.

10. Do you think your company contributed to a trade deficit or trade surplus in their home country? Provide examples

Microsoft has contributed to a trade surplus in its home country, the United States. Microsoft's exports to other countries have been greater than its imports from those countries. For example, Microsoft has sold its products and services to countries such as India, China, and Japan, while importing fewer products and services from those countries. This has resulted in a trade surplus for the United

States.

11. Did they experience any non-tariff barriers? E.g., subsidy, import quota, VER etc.

Microsoft has experienced non-tariff barriers in some of the countries it operates in. For example, Microsoft has faced import quotas in China, which limit the amount of products and services that the company can export to the country. Additionally, Microsoft has faced subsidies in India, which have enabled local competitors to undercut Microsoft in the market. Microsoft has also faced voluntary export restraints (VERs) in Japan, which have limited the amount of products and services that the company can

export to the country.

12. What challenges or advantages did foreign exchange pose?

Foreign exchange has posed both challenges and advantages to Microsoft. On the one hand, fluctuations in exchange rates have posed a challenge to Microsoft, as it has had to manage its foreign exchange risk in order to avoid losses. On the other hand, fluctuations in exchange rates have also presented opportunities for Microsoft, as it has been able to benefit from favorable exchange rates in certain countries. For example, Microsoft has been able to take advantage of a weak dollar in India, which has enabled the company to increase its profits in the country.

13. How did policies implemented by WTO affect your organization?

The policies implemented by the World Trade Organization (WTO) have had a significant impact on Microsoft. The WTO has implemented various trade agreements and policies that have enabled Microsoft to operate in international markets and to benefit from global trade. For example, the WTO's Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement has enabled Microsoft to protect its intellectual property in international markets. The WTO has also implemented various dispute resolution mechanisms, which have enabled Microsoft to resolve any disputes it has had with other countries in an efficient and effective manner.

14. Identify any first movers or late movers advantage.

Microsoft has been a first mover in many markets, which has enabled it to gain a competitive advantage over its competitors. For example, Microsoft was one of the first companies to enter the Chinese market in 2003, which enabled it to gain a head start over its competitors. Microsoft was also one of the first companies to enter the Indian market in 2017, which enabled it to gain a foothold in the market before its competitors. Additionally, Microsoft was one of the first companies to enter the cloud computing market, which enabled it to gain a competitive advantage over its competitors.

15. What did your company do to reduce the liability of foreignness?

Microsoft has taken several steps to reduce the liability of foreignness. For example, Microsoft has invested in local market research in order to understand the needs and preferences of local customers. Additionally, Microsoft has partnered with local companies in order to gain a better understanding of the local market and to develop products and services that are tailored to local customers. Furthermore, Microsoft has invested in local talent in order to gain access to local expertise and to better understand the local culture. Finally, Microsoft has made efforts to comply with local laws and regulations in order to reduce any potential risk associated with operating in foreing market.