Chapter 8 - BUSN 450

Question 1

International strategy

Answer 1

refers to a range of options for operating outside an organisation’s country of origin.

Question 2

Global strategy

Answer 2

involves high coordination of extensive activities dispersed geographically in many countries around the world.

Question 3

Yip’s Internationalisation Drivers

Answer 3

1) Market Drivers 2) Cost Drivers 3) Competitive Drivers 4) Government Drivers

Question 4

Porter’s Diamond

Answer 4

explains why some locations tend to produce firms with sustained competitive advantages in some industries more than others.

Question 5

The four drivers in Porter’s Diamond

Answer 5

•factor conditions
•demand conditions
related and supporting industries
local firm strategy structure and rivalry.

Question 6

Global sourcing

Answer 6

refers to purchasing services and components from the most appropriate suppliers around the world regardless of their location.

Question 7

The global–local dilemma

Answer 7

relates to the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets.

Question 8

The CAGE Framework

Answer 8

Cultural distance, Administrative and political distance, Geographic distance, Economic distance

Question 9

Modes of entry

Answer 9

1) Exporting 2) Joint ventures and alliances 3) Licensing 4) foreign direct investment