S2: Internationalization readiness Flashcards
Explain the components of the macro-level of internationalization readiness.
Understanding your own country and the home country of your competitors.
What are the three levels of internationalization readiness mentioned in the lesson?
Macro-level, Meso-level, and Micro-level.
According to the lesson, what does the meso-level of internationalization readiness involve?
Understanding dynamics in your industry.
What is the micro-level of internationalization readiness, and what does it entail?
Understanding your competitive advantages and how you create value for foreign customers.
List the Porter’s Five Forces.
Degree of rivalry with competitors, threat of new entrants, threat of substitute products, bargaining power of suppliers, and bargaining power of customers.
Define international competitive advantage.
An advantage over competitors gained by offering consumers greater value, based on non-duplicable and inimitable processes, supported by assets not easily copied by competitors.
What creates a competitive advantage in international markets, according to the lesson?
Unique resources or capabilities that offer meaningful benefits to consumers and cannot be imitated by competitors.
What are the four stages of the Uppsala Model?
No regular exports, export via independent representatives, establishment of a foreign sales subsidiary, foreign production/manufacturing subsidiary.
What are the key messages of the Uppsala Model?
Internationalization is a slow, time-consuming, and iterative process; market commitment depends on resources and specificity; knowledge is crucial in the internationalization process.
Describe the perspective of the Uppsala Model on internationalization.
Internationalization is a slow, time-consuming, and iterative process influenced by knowledge and commitment levels.
What does the TCA (Transaction Cost Analysis) Model analyze?
It analyzes the costs associated with transactions between different entities, such as firms, individuals, or organizations.
According to the TCA Model, when will a firm expand?
The firm will expand as long as the cost of organizing an extra transaction internally is lower than using the market.
How does network theory drive expansion, according to the lesson?
Existing relationships act as “bridges” and drive expansion, focusing on technical, economic, legal, and personal ties.
What is the significance of leveraging the network in the context of the network theory?
Leveraging the network involves drawing benefits from existing relationships to facilitate expansion.
List some cultural challenges in international markets.
Language barriers, social norms, cultural norms, foreign holidays.
