Chapter 8 - BUSN 450 Flashcards
International strategy
refers to a range of options for operating outside an organisation’s country of origin.
Global strategy
involves high coordination of extensive activities dispersed geographically in many countries around the world.
Yip’s Internationalisation Drivers
1) Market Drivers 2) Cost Drivers 3) Competitive Drivers 4) Government Drivers
Porter’s Diamond
explains why some locations tend to produce firms with sustained competitive advantages in some industries more than others.
The four drivers in Porter’s Diamond
•factor conditions
•demand conditions
related and supporting industries
local firm strategy structure and rivalry.
Global sourcing
refers to purchasing services and components from the most appropriate suppliers around the world regardless of their location.
The global–local dilemma
relates to the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets.
The CAGE Framework
Cultural distance, Administrative and political distance, Geographic distance, Economic distance
Modes of entry
1) Exporting 2) Joint ventures and alliances 3) Licensing 4) foreign direct investment