International Strategy Flashcards
What is International Strategy
a range of options for operating outside an organisation’s country of origin
What is Global Strategy
Involves high coordination of extensive activities dispersed geographically in many countries around the world
Global Strategy is just one kind of international strategy
Drivers of Internationalisation
Market Drivers
Cost Drivers
Competitive Drivers
Government Drivers
What are the four drivers in Porter’s Diamond
Local factor conditions
Local Demand conditions
Local-related and supporting industries
Local firm strategy, industry structure and rivalry
What does Global Sourcing refer to?
Purchasing services and components from the most appropriate suppliers around the world, regardless of their location
What is the global-local dilemma?
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.
What are the four international strategies and do they have strong or weak pressures from global integration and local responsiveness
Transnational Strategy - strong global integration, strong local responsiveness
Multi-domestic strategy - weak global, strong local
Global strategy - Strong global, weak local
Export Strategy - Weak global, weak local
What does CAGE stand for?
Cultural distance
Administrative and political distance
Geographic distance
Economic/wealth distance
What are the three criteria a country’s market can be assessed by?
Market attractiveness
Likelihood and extent of the defender’s reaction
defenders’ clout - the power of defenders fighting back
What is the staged international expansion model?
It proposes a sequential process whereby companies gradually increase their commitment to newly entered markets, as they build market knowledge and capabilities
What is staged international expansion model challenged by?
Born-global firms - new, small firms that internationalise rapidly
Emerging-country multinationals - building unique capabilities in the home market but exploiting them in international markets very quickly
Ways to manage political risks
find a local partner
political neutrality
negotiation with governments
Ways to manage economic risks
currency hedging
countertrade
geographic diversification
