Second Quiz Page 106+107

Question 1

What is the levels of global investment from lowest investment to highest?

Answer 1

1. global sourcing
2. exporting and importing
3. licensing
4. franchising
5. strategic alliance - joint venture
6. foreign subsidary

Question 2

Global sourcing? aka? and when is it used?

Answer 2

aka: global outsourcing
def: purchasing materials or labor from around the world wherever it is cheapest
used: managers who want minimal investment in global markets

Question 3

exporting?

Answer 3

making products domestically and selling them abroad

Question 4

importing?

Answer 4

getting products from abroad and selling them domestically

Question 5

licensing?

Answer 5

when an organization gives another organization the right to make or sell its products using its technology or product specifications

Question 6

franchising?

Answer 6

when an organization gives another organization the right to use its name and operating methods

Question 7

strategic alliance?

Answer 7

partnership between an organization and foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities

Question 8

joint venture

Answer 8

specific type of strategic alliance where the partners form a separate, independent organization for some business purpose

Question 9

foreign subsidary? def and the two ways it can be managed and their def

Answer 9

def: directly investing in a foreign country by setting up a separate and independent production facility or office

two ways to be managed:
multidomestic organization: local control
global organization: centralized control