Chapter 7

Question 1

Political risk:

Answer 1

stem from instability or weakness in national government and hostility to foreign business

Question 2

Economic risk:

Answer 2

stem from stability of a country’s monetary system, economic and regulatory policies and the lack of property rights protections.

Question 3

International Strategy:

Answer 3

is its strategy for competing in two or more countries simultaneously

Question 4

Multidomestic strategy

Answer 4

call for varying a company’s product offering and competitive approach from country to country in an effort to be responsive to significant cross-country difference in customer preferences, buyer purchasing habits, distribution channels or market methods

Question 5

Think local, act local

Answer 5

strategy-making approaches are also essential when host-government regulations or trade policies preclude a uniform coordinated worldwide market approach

Question 6

Global Strategy

Answer 6

employ the same basic competitive approach in all countries where a company operates and are best suited to industries that are globally standardized in terms of customer purchasing habits, distribution channels or market methods.

Question 7

Think global act global

Answer 7

strategic theme employs the same basic competitive approach in all countries where the company operates and put strategic emphasis on building a global brand name and aggressively pursuing opportunities to transfer ideas, new products, and capabilities from one country to another

Question 8

Transnational strategy

Answer 8

is a think global act local approach to strategy making that involves employing essentially the same strategic theme (low-cost, differentiation, best-cost) in all country markets, while allowing some country-to-country customization to fit local market conditions

Question 9

Think global, act local:

Answer 9

strategic approach is emphasized in a transnational strategy intended to accommodate cross-country variations in buyers tastes, local customs, and market conditions while also striving for benefits of standardization