10.12.24

Question 1

Why do firms internationalize?

Answer 1

• Intense domestic competition.
• Slim profit margin.
• Domestic Saturation and reaching maturity
• Serve customers that have relocated abroad.
  Prevent the grow of competition in the home market.

Question 2

What is attractive with foreign markets?

Answer 2

• Sales opportunities
• Extend product life cycle, especially after
• Serve underserved or overlooked markets
• Gaining new ideas for products , and business processes.
• Acquire knowledge to enhance efficiency.
• Access to lower cost or better value factors of productions
• Curb competitors’ growth

Question 3

What are the internationalization strategies

Answer 3

1. Exporting
2. Global sourcing
3. Foreign Direct Investment
4. International Collaborative Ventures
5. Licensing

Question 4

What is exporting strategy

Answer 4

The strategy of producing products or services in one country (often the producer’s home country) and selling and distributing them to customers
located in other countries.

Question 5

What is Global Sourcing strategy

Answer 5

Relies on a contractual relationship between the buyer (the focal firm) and a foreign source of supply

Question 6

What is Foreign Direct Investment strategy

Answer 6

the firm establishes a physical presence abroad
through direct ownership of productive assets such as capital, technology, labor, land, plant, and equipment.

Question 7

What is International Collaborative Ventures strategy

Answer 7

Partnerships between two or more firms aimed at sharing risks and leveraging each other’s complementary resources, capabilities, or market access

Question 8

What is Licensing strategy

Answer 8

A legal contract that outlines the relationship between the owner of intellectual property (the licensor) and the party granted permission to use it (the licensee)