M1S2 Quiz 1 Part 2 Flashcards
May be required by law, direct importing may be restricted, or the company has limited financial resources.
a. Licensing
b. Franchising
Licensing
“__________” agreements allows the firm to retain control of quality. it has low capital investment, rapid expansion, local market knowledge.
a. Licensing
b. Franchising
Franchising.
spread risk of foreign investment among partners. for example, they dominate the airline industry with oneworld, skyteam, and star.
a. strategic Alliances
b. International Joint Ventures
Strategic Alliances
allows companies to enter markets that would be closed because of legal restrictions or cultural barriers. they are formed by two or more companies that share management duties in a defined structure and also hold equal equity position. they cannot be formed by individuals
a. strategic Alliances
b. International Joint Ventures
International joint ventures
is the riskiest strategy, but offers potential for long term growth.
Direct Foreign Investment
becomes more complicated with added layers of authority and differences in global time zones. clearly defined protocols for “_________” are needed
a. Decision Making Authority
b. Degree of centralization
Decision Making Authority
affects resource allocation and personnel. organization structure can be centralized, decentralized or regionalized.
a. Decision Making Authority
b. Degree of centralization
degree of centralization
means no changes in the product. there no extra R&D or manufacturing costs.
a. Direct Product Extension
b. Product Adaptation
c. Backward Product Invention
d. Forward Product Invention
Direct Product Extension
means the product is changes to meet local market needs and legal requirements. product changes range from regional to city levels.
a. Direct Product Extension
b. Product Adaptation
c. Backward Product Invention
d. Forward Product Invention
Product Adaptation
takes a discontinued product from one market and introduces it into another.
a. Direct Product Extension
b. Product Adaptation
c. Backward Product Invention
d. Forward Product Invention
backward product invention
creates new product for new markets
a. Direct Product Extension
b. Product Adaptation
c. Backward Product Invention
d. Forward Product Invention
forward product invention
is viewed differently around the world
a. Quality
b. Fitting the product to the culture
c. brand strategy
d. country of origin
Quality
is a challenge with brand names, product colors and features.
a. Quality
b. Fitting the product to the culture
c. brand strategy
d. country of origin
Fitting the Product to the Culture
decisions reflect either global, regional or local brand.
a. Quality
b. Fitting the product to the culture
c. brand strategy
d. country of origin
Brand strategy
the “_________” effect is the positive or negative perception of the product based on the producing country.
a. Quality
b. Fitting the product to the culture
c. brand strategy
d. country of origin
Country of Origin
