Chapter 15 Flashcards
1
Q
Foreign expansion decisions
A
- which markets to enter
- when to enter these markets
- what is the scale of entry
2
Q
Favorable foreign market
A
- Politically stable
- Free market
- No dramatic upsurge inflation or private-sector debt
3
Q
Unfavorable foreign market
A
Politically unstable; excess borrowing
4
Q
Advantages in early market entry
A
- 1st mover
- Build sales volume
- Down experience curve; get cost advantage
- Switching cost (loyalty)
5
Q
Disadvantages in early market entry
A
- Pioneering costs
- Changes in gov policy
6
Q
Advantage of exporting
A
Location and experience curve economies
7
Q
Disadvantage of exporting
A
- High transport cost
- Trade barriers
- Problems with local MKT agents
8
Q
“Turnkey contracts” advantage - Dự án trao đổi
A
Earn return from techno skills in countries where FDI is restricted
9
Q
“Turnkey contracts” disadvantage - Dự án trao đổi
A
- Creates efficient competitors
- Lack of long-term market presence
10
Q
“Licensing” advantage
A
Low development costs and risks
11
Q
“Licensing” disadvantage
A
- Lack of techno control
- Lack of location and experience curve economies
- Lack of globalization std strategy engagement
12
Q
“Franchising” advantage
A
Low development costs and risks
13
Q
“Franchising” disadvantage
A
- Lack of quality control
- Lack of global std strategy engagement
14
Q
“Joint ventures” advantage
A
- Access to local partner’s knowledge
- Sharing development costs and risks
- Politically acceptable
15
Q
“Joint ventures” disadvantage
A
- Lack of techno control
- Lack of location and experience economies
- Lack of global std strategy engagement
16
Q
“Wholly owned subsidiaries” advantage
A
- Techno protected
- Global std strategy engagement
- Location and experience curve economies
17
Q
“Wholly owned subsidiaries” disadvantage
A
High costs and risks
