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Focusing on a limited number of locations can increase a companys competitive advantage when
- Manufcacturing costs are lower in a certain area
- a large learning curve is associated with a particular task
another way to define the concept of multi domestic strategy is as a
-Think-local, art-local approach
what is way a company can successfully compete in a developing country market, as shown by japans Suzuki when it entered india?
change the local market to match the companys core operations
What are policies that governments adopt to stimulate business investment
- Offering low cost business loans
- Providing government-sponsored job training
An International strategy is a companys strategy for competing in two or more_____ simultaneously
countries
To be successful, a think-global, act-global approach generally requires which of the following?
- centralized production
- a global brand name
The practice of operating on very thing margins coupled with healthy profits to acquire a profit sanctuary is known as
cross-market subsidization
acquiring a foreign company as a means of entering a foreign market can allow a business to do which of the following?
- Build supplier relationships
- Avoid the risks of greenfield venture
- Gain access to local distribution channels
Which statements about greenfield ventures are true?
- They are subject to a high level of risk
- They are costly
- They require many company resources
in terms of a country business climate, a country’s inflation rate and level of deficit spending are types of
Economic risk
a company that distributes its activities across multiple location can seek which advantages?
_ lowering distribution costs
_ providing customer with timely service and technical support
_reducing the risks of fluctuating exchange rate
The strategic option of home based production and export allows a company to do what?
- Minimize its direct investment in foreign countries
- limit its involvement in foreign markets
A Company that wishes to control all aspects of its operation when it expands into foreign markets should establish a
wholly owned subsidiary
A company seeking to establish a subsidiary in a foreign country may choose to establish a greenfield venture if an internal startup
- costs less than an acquisition
- can gain good distribution access
- can successfully compete w local rivals
For domestic manufacturs,positive aspects of a weak domestic currency include
- reduced domestic demand for foreign made good
- lower prices for domestic products
what do companies commonly risk losing when they develop joint ventures with companies in a foreign country ?
Their competitive advantage
What are reasons that companies expand into foreign markets?
- To gain access to new customers
- to achieve lower costs
- to gain access to low cost production
Spurring market growth in a domestic market can translate into an international competitive advantage owing to which of the following?
increasing innovation and quality improvements
Producing goods in domestic plants and exporting them is considered
a conservative way to enter a foreign market
a transitional strategy is a ____ approach
think-global, act-local
Which factors make dispersing a companys activities competitively important
?
- Major customers in areas without low-cost production
- Threat of supply interruptions
- Trade barriers to importing maufactured goods
Focusing on a limited number of locations can increase a companys competitive advantage when
- manufacturing costs are lower in a certain area
- a large learning curve is associated with a particular task
Elements of a countrys infrastructure that can contribute to factor conditions include
- banking systems
- transportation
- communication
Companies typically move into foreign markets to
exploit their competitive core competencies
Which two issues do companies encounter when undergoing international expansion?
- the demand to customize products to suit local preferences
- the cost-effectiveness of providing a standardized product globally
If significant economies of scale exist, a company that concentrates on a limited number of locations can do what?
achieve major cost savings
Joint ventures are likely when what occurs?
a local partners expertise is less valuable than expected
what are examples of demand conditions ?
- relative size of the market
- growth potential
- domestic buyers needs and wants
A global company can achieve market share in a national market by
- Cutting prices
- drawing customers away from domestic rivals
- launching marketing campaigns
A Company that employs a global strategy will do which of the following?
- Create a strong headquarters to oversee its global activities
- Coordinate efforts across country boundaries build a global brand
- Sell a standardized global product
in terms of a counrys business climate, the instability or weakness of a national government is a type of
Political risk
Companies that implement a transitional strategy often employ mass-customization techniques designed to
Accommodate local preferences in a semi standardized way
A joint venture hamper a companys goal for global market leadership by fostering
too much dependence on a foreign partner
currency exchange rates can pose a risk for businessess bc they
-can change by more than 20% a year
- vary unpredictability
- affect a company profit
A company that expands into a foreign market by purchasing the option of entering into a strategic alliance with a foreign partner can
-share technological know how
share distribution facilities
-achieve cost savings
to discourage foreign companies from locating manufacturing facilities in a country, the countrys government can do which of the following?
- Provide government financial assisstance to domestic companies
- Require partial ownership of the facilities by local companies or investors
-make a new facility’s compliance with local environmental regulations very costly
creating a strategy for entering an international market can be more difficult than entering a domestic market because
buyer prefrences in foreign markets force companies to customize their products
what are drawbacks of global strategies?
- difficulty addressing local needs
- higher transportation costs
exporting goods may be a successful strategic option if the company
can maintain its cost competitiveness at home
the strategic option of acquiring a foreign partner gives a company expanding into a foreign market the advantage of
- intimidate knowledge of local buying habits and consumer preferences
- already established relationship with distributors
- familiarity with local government regulations
By transfering company expertise to cross border markets, a domestic company can successfully do what
transform into a global company in its own right
wat can help a company compete successfully in developing country markets?
- customizing its business model to suit local circumstances
- offering lower priced , better products
Governments can discourage imports of specific items by
-imposing a ban on importation
