International management

Question 1

Reasons for going international

Answer 1

• defensive
  -aggressive

Question 2

Examples of defensive reasons

Answer 2

• globalization of competitors
• trade barriers
  -regulations and restrictions
• customer demands

Question 3

examples of aggressive reasons

Answer 3

• economies of scale
• growth opportunities
  -incentives
• cost savings

Question 4

Global integration matrix

Answer 4

1) global strategy
2) transnational strategy
3)international strategy
4) multi domestic strategy

Question 5

what is the global strategy

Answer 5

• based on price competition

Question 6

what is transitional strategy

Answer 6

-emphasises both global integration and local responsiveness

Question 7

what is international strategy

Answer 7

• combines low demand for integration and responsiveness

Question 8

what is a multi domestic strategy

Answer 8

• differentiated strategy emphasizing local adaptation

Question 9

steps in developing international strategies 6

Answer 9

• establish mission and objcetives
• assess external environmnet
• assess internal factors
• evaluate global and international strategic alternatives
• decide on best strategy

Question 10

first step: mission and objcetives

Answer 10

• marketing
• production
• finance
• profitability
  -research and development

Question 11

2nd step: assess external environment

Answer 11

• global risks
  -regional risks
• national risks
• institutional effects

Question 12

step 3: asses internal factors

Answer 12

• key success factors
• firms competitive adavantage

Question 13

step4: evaluate global strategic alternatives

Answer 13

• global strategy
• localization and regionalization strategy
  -global integrative strategy

Question 14

what is the CAGE

Answer 14

• Cultural
• adminstrative
• geographical
• economic