chp 11 Flashcards
(20 cards)
When should a company consider international expansion?
b) After evaluating domestic growth, innovation, and acquisition
Why do companies expand internationally?
d) All of the above
What is a major complexity added by international expansion?
b) Legal and cultural issues not present in domestic growth
What value creation focus defines global strategy?
b) Upstream
What pressure for efficiency exists in global strategy?
a) High pressure for efficiency
What value creation focus defines transnational strategy?
a) Downstream
What efficiency pressure exists in transnational strategy?
a) High pressure for efficiency
What value creation focus defines multi-domestic strategy?
a) Downstream
What efficiency pressure exists in multi-domestic strategy?
b) Low pressure for efficiency
What value creation focus defines centralized single company strategy?
b) Upstream
What efficiency pressure exists in centralized single company strategy?
b) Low pressure for efficiency
What is cultural distance?
b) Differences in language, ethnicity, religion, norms
What is administrative and political distance?
a) Differences in laws and institutions
What is geographic distance?
a) Differences in time zones and climate
What is economic distance?
a) Differences in education, income, development
What is exporting as a mode of international expansion?
a) Generate sales through local agents
What is licensing and franchising?
b) Short duration agreements requiring monitoring
What is a strategic alliance or joint venture?
a) Long-term relationships with mutual goals
What is a wholly-owned subsidiary?
a) Fully owned foreign operation employing in-country managers
What two value chain questions guide choice of international strategy?
a) Value creation location and efficiency pressure
