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Flashcards in Global Level Strategy Deck (10)
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1
Q

What does international trade mean?

A

Exchange of goods and services between countires

2
Q

What does foreign direct investment mean?

A

Owning part of a company in another country.

Merger or acquisition.

3
Q

What are the different patterns of internationalisation?

A

Sheltered industries

Trading Industries

Multi-domestic industries

Global industries

4
Q

Explain sheltered industries

A

Low FDI and Low IT

Railroads, hairdressing, diary.

Localised, small-scale perishable and difficult to move.

5
Q

Explain trading industries

A

Low FDI and High IT

Aerospace, airline, agriculture

Transportable, large scale of economies.

6
Q

Explain multi domestic industries

A

High FDI and Low IT

Packaged groceries, hotels, international chain of restaurants

Products are national differentiated, internationalised through direct investment.

7
Q

Explain global industries

A

High FDI and High IT

Automobiles, Oil, Semi-conductors

Large scale manufacturing companies, trade and direct investment is important.

8
Q

What is Porter’s Diamond Framework?

A

How industries within a country develop resources and capabilities to develop an international competitive advantage.

9
Q

Explain the elements of Porter’s Diamond Framework.

A

Factor conditions
• Highly specialised home-grown resources and capabilities

Related supporting industries
• Industries that support your business

Demand conditions
• Is there a demand for the product?
This is important as customers drive
quality and innovation.

Strategy, structure, and rivalry
• How firms interact with a domestic market.

10
Q

What are the benefits of global strategy?

A
Cost benefits of scale and replication 
Serving global customers
Exploiting national resources (very important)
Learning benefits (very important)
Competing strategies (very important)