Introduction

Question 1

What does semi-globalization mean?

Answer 1

Semi-globalization describe incomplete cross-border integration. It means that both forces of globalization and localization are taking place at the same time, which is the fundamental source of uncertainty in international business.

Question 2

What is meant by glocalization?

Answer 2

it is the development and selling of products or services intended for the global market but adapted to suit local culture and behavior.

Organizations following such a strategy coordinate their efforts, ensuring local flexibility while exploiting the benefits of global integration.

Linked to a geocentric mindset

Question 3

name some of the forces for ‘global integration’

Answer 3

• Removal of trade barriers (deregulation).
• Global accounts/customers.
• relationship management/network organization.
• Standardized worldwide technology.
• global markets.
• ‘Global village’
• global communication.
• Global cost drivers.

Question 4

Name some of the forces for ‘market responsiveness’

Answer 4

• Cultural differences.
• Regionalism/protectionism.
• Deglobalization.

Question 5

What is a value chain, and what activities are included?

Answer 5

Value chain is a categorization of the firm’s activities providing value for the customers and profit for the company. It is possible to create competitive advantage through cost or differentiation.

primary activities
o Inbound logistics
o Operations
o Outbound logistics
o Marketing and sales
o Service

support activities:
o Infrastructure
o Technology
o Human resources
o Procurement

Question 6

Describe the two types of internationalization motives

Answer 6

• Proactive motives represent stimuli based on the firm’s interest in exploiting unique competences or market possibilities.
• Reactive motives indicate that the firm reacts to pressures or threats in its home market or in foreign market.

Question 7

How is motives and triggers of internationalization related?

Answer 7

Proactive/internal:
- Growth and profit goals
- managerial urge
- unique product
- EoS

Proactive/external:
- Market opportunities
- market information

Reactive/internal
- excess capacity/overproduction
- extended sale of seasonal products
- Diversification of risk

Reactive/external
- Competitive pressure
- domestic market: small and saturated
- unsloicited foreign orders
- closeness to customers