Country Attractivness And Firm Internationlisation

Question 1

Location decision process

Answer 1

1 - Objective

2 - strategy

3 - overlay tactic / choosing of countries

4 — choosing new location
— allocating among locations

5- make final decision

Question 2

Pestle stands form

Answer 2

Political
Environmental
Sustainable 
Technological
Legal
Economic

Question 3

Pestle definition

Answer 3

Pestle is an important tool used for market and environmental analysis and to support strategic decision making

Question 4

Frameworks to use for country analysis

Answer 4

Cage framework

Pestle analysis

Question 5

CAGE Definition

Answer 5

The cage distance distance framework identifies cultural, administrative, geographical and economic differences of distances between countries that companies should address when crafting international strategies

Question 6

Country opportunity comparison tools

Answer 6

Risk matrix

• compares the high/low risk to the high/low attractiveness of a country opportunity
• is a simple mechanism to increase the risk and visibility of risk and assist management decision making

Question 7

Types of international Strategy for new country

Answer 7

• Diversification strategy

- Concentration strategy

Question 8

Diversification strategy definition

Answer 8

Go into many markets fast and then build up slowly in each

Question 9

Concentration strategy

Answer 9

Go to one or few markets and build up fast before going to others

Question 10

Reinvestment and harvesting (same country)

Answer 10

Reinvestment
-new investment to maintain competitiveness
Harvesting
-reducing commitments because they don’t fit with new strategy