385 exam 2 Flashcards
Globalization
how trade and technology have made the world into a more connected and interdependent place
Factor endowments
resources a company can use for economic activity, such as land, minerals, capital and labor
Demand conditions
the nature and size of customer demand for a product or service within a company
Related and supporting industries
businesses that supply inputs or purchase other businesses outputs
Firm strategy and rivalry
the ways in which companies within a nation are organized, managed, and the nature of domestic competition
4 types of basic international strategies
international, multi-domestic, global, transnational
Entry modes of international expansion
exporting, licensing, partnering, acquisition, and greenfield venturing (when a parent company constructs new operations facilities in a foreign country)
Informational control
occurs when an organization or system controls or limits the information that is made available to a person or machine
Behavioral control
the influence someone has over the actions and behaviors of others
Corporate governance
the system by which companies are controlled and directed
Shareholder activism
a way that shareholders can influence a corporation’s behavior by exercising their rights as partial owners
Agency problem
a conflict of interest in a business relationship in which one party fails to act in the best interest of another party
Organizational structure
defines how job titles, roles, and responsibilities are assigned within a company
Functional structure
breaks down organizations into different departments
Divisional structure
organizational structure where a company is segmented into independent divisions, typically based on products, services, or geographical regions
Matrix structure
a hybrid organizational structure where team members report to multiple leaders, often across different departments or projects
Global startup
a company that aims to derive competitive advantages by operating and selling products or services in multiple countries
Outsourcing
practice of hiring a party outside a company to perform services or create goods
Offshoring
a company moves different operational and service-related functions to other countries
Strategy
a long-term plan of action designed to achieve specific goals and objectives that guide the company
What is an industry
specific grouping of businesses that share similar activities, products, or services
What are some of the opportunities of international expansion
increased market access, diversified risk, and opportunities for growth and innovation
Before engaging in international strategies, what questions/issues should the firm consider
understanding the target market’s demand, the cost of expansion, legal and regulatory requirements, and necessary infrastructure
Advantages of the functional structure
specialization, clear communication, and efficient operations
