Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

International Management > 1.2 What is an international firm? > Flashcards

1.2 What is an international firm? Flashcards

1
Q

DOI

A

Degree of internationalization

How international is a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is an international firm?

A
  • involved in foreign activities to a substantial exten

- cross-border transactions on a regular basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What the the quantitative and qualitative approaches when looking at an international firm?

A 
Quantiative absolute approach:
- Stock variables
- Flow variables
Quantitative relative approach:
- Foreign ratio
- Internationalization profile
Qualitative approach:
- Perlutters model
Bertlett/Ghoshals
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a stock variable

A
  • quantitative absolute approach
  • Ex number of countries, foreign subsidaries, employers abroad etc
  • Fixed date measurement
  • Makes more sence in relation to something (ratio)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Flow variables

A
  • quantitative absolute approach
  • Ex. profit abroad, salaries abroad, production etc
  • Reporting period
  • Makes more sence in relation to something (ratio)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

International profile

A
  • Ratio of internationalization
  • Ex employees, salse etc
  • Percentage of FTO ration (foreign employees/totoal employees)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

FTO ratio

A
  • Foreign to total ratio
  • The ratio can be different for different things such as sales, employees
  • Comparing internationality with FTO ratio can be hard since companies can have different ratios for different units
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The 4 different archetypes of Perlmutters model

A
  • Ethnocentric
  • Polycentric
  • Regiocentric
  • Geocentric
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Ethnocentric orientation

A
  • „This works at home; therefore, it must work in your country
  • HQ power over subsidaries (makes decision)
  • Management techniqes transfered to subsidiaries
  • Manager expatriation (manager from HQ)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Polycentric orientation

A
  • We want to be a good local firm with host country orientation
  • Ok with cultural differnces between subsidaries
  • decentralized decision
  • Local senior mangers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Geocentric orientation

A
  • „world oriented orientation“: the firm is seen as a worldwide unit
  • Subsidiary equal rights and worldwide network
  • joint decision making (lots of communication)
  • subsidiaries can have specializations
  • Managers are worldwide best people
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Regiocentric orientation

A
  • Polycentric and geocentric orientation
  • Ex. Europa as one homogenous area
  • Build regional blocks with regional HQ
  • Groups of regions instead of local markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is integration

A
  • Integration of several subsidiaries

- coordinating subsidiaries regarding management systems, technologies, strategies and production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is responsiveness

A
  • Differnet products in different countries
  • Different prices
  • Different designs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Draw the Bartlett/Ghoshal I/R model

A
  • Y axel : forces for global integration
  • X-axel : Forces for local differentiation
  • International organization, multinational organization, global, transnational
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

International firm

A
  • Strategies formed HQ and assigned to subsidaries
  • HQ makes decision
  • Launch prod in home country first
  • Initial stage of internationalization (ex export)
  • Ex Cement
    PRO
  • Core competences
  • Ec of Scale
  • Low cost implementation (exporting, licencing, franshising)
    NEG
  • no/low local responsiveness
  • effected by exchange rate fluctiation
  • IP easily expropriated
17
Q

Multinational firm

A
  • Subsidaries seen as local firms (Live a portfolio of several national firms)
  • Strong local presence
  • Decentralized decision making
  • Local responsiveness
  • Ex food, publishing
    PRO
  • highest possible local responsiveness
  • less exchange rate exposure
    NEG
  • duplication of business functions (costly)
  • no ec of scale
  • No learning across regions
18
Q

Global firm

A
  • World market with high efficenty -> global efficiency
  • Activites centralized few localtion ->cost intensive
  • „Building cost advantages through centralized global-scale operations“
  • No local responsiveness
  • Ex. Aircraft, construction
    PRO
  • Ec of scale
  • Location economies (find where global advantages are
    CON
  • no local responsiveness
  • little product differentiation
  • exchange rate exposure
19
Q

Transnational firm

A
  • Combine advantages from multinational and global firms
  • local responsiveness and integration adv. ex. partial standardization like car assembly
  • Subsidiaries globally responsible for prod/func
  • Ex. Defense, telecommunication
    PRO
  • combine benefits of localization and standardization
  • Ec of scale, location and learning
    CON
  • Costly and difficult
  • high complexity
  • exchange rate exposure

International Management (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions