chapter 12

Question 1

localization/ Multi-national approach

Answer 1

engineering/manufacturing is independent from the headquarters
example- headquarters in the US but there are independently operated locations in other countries

Question 2

Global Standardization Approach

Answer 2

Centralized Hub

ex- decisions are made by the headquarters so the other locations don’t make any decisions

Question 3

International approach

Answer 3

happy medium

the headquarters is decentralized so it has more influence but not full on subsidaries

Question 4

problem with international approach

Answer 4

Attitude - Not Invented Here (NIH) Syndrome

HQ looks down on foreign subsidiaries

Question 5

Transnational Companies

Answer 5

geocentric
they are more flexible, only move around when they have to
clear communication between HQ and subsidiaries
decisions should be made based on merit

Question 6

advantages of Localization/Multinational approach

Answer 6

Can cater to unique local needs
Not affected by trade barriers
No transportation costs
Management may be easier
Not affected by nationalism