Chapter 10: International strategy

Question 1

What is the difference between international strategy and Global Strategy?

Answer 1

International strategy - Refers to a range of options for operating outside an organisations country of origin

Global strategy - Involves high coordination of extensive activities dispersed geographically in many countries around the world

Question 2

What four drivers does Yips globalisation framework consider?

Answer 2

International strategy potential as determined by market drivers, cost drivers, government drivers and competitive drivers

Question 3

Explain portes diamond

Answer 3

The model explains why some locations tend to produce firms with specific competitive advantages (Swiss banking, Taiwan computers)

The model suggest that locational advantages may stem from local factor conditions; local demand conditions; local related and supporting industries; and from local firm strategy structure and rivalry

Question 4

What is the CAGE framework?

Answer 4

Emphasises the importance of cultural, administative, geographical and economic distance

Question 5

What is entery mode strategies?

Answer 5

Entery mode strategies differ in the degree of resource commitment to a particular market and the extent to which an organisation is operationally involved in a particular location

Increase resource commitment —> exporting, licensing or franschising, joint ventures, wholly owned subsidiaries