International business strategies

Question 1

what is globalisation

Answer 1

Globalization is a term used to describe how trade and technology have made the world into a more connected and interdependent place.

Question 2

What is the liability of foreigness

Answer 2

is the inherent
disadvantage foreign firms experience in host
countries because of their outsider status.

Question 3

advantages of globalisation

Answer 3

1. economies of scale
2. opportunity to benefit from skilled workers

Question 4

disadvantages of globalisation

Answer 4

1. increased competition
2. environmental concerns.
3. may face protectionist measures

Question 5

what is pestle.

Answer 5

an framework which analyses the external environment.

Political
Economic
Social
Technological
Legal
Environmental

Question 6

What is the CAGE framework

Answer 6

capture essential information you need to consider when entering a new market and highlight how big a difference there is between what you currently do and what you will need to do.

Cultural
Adminstrative
Geographic
Economic

Question 7

name some examples of cultural differences found in the cage framework.

Answer 7

Language
Ethnicity
Religion
Values and social norms.

Question 8

name some 3 examples of Administrative differences found in the cage framework

Answer 8

Trade Agreements
Currency translations
Legal System
Visas?

Question 9

Name some examples of economic differences found in the cage framework.

Answer 9

Income per capita
minimum wage
interest rate

Question 10

Name some geographical differences found in the cage framework.

Answer 10

Physical distance.
Boarder (Land or sea)
Climate
Timezones
Transportation

Question 11

Limitations of the cage framework.

Answer 11

1. focuses on the country rather than the market
2. requires a lot of research.

Question 12

how do countries expand internationally without losing their mojo

Answer 12

1. Identify the dimensions of difference
2. give everyone a voice
3. train everyone in key norms
4. Heterogenous everywhere. 9encourage diversity)

Question 13

what are the advantages to being a first mover.

Answer 13

1. stronger brand reputation
2. create entry barriers for future competitors
3. build relationships with stakeholders like suppliers or the government.

Question 14

disadvantage of being a first mover

Answer 14

1. uncertain demand
2. high research and demand costs.
3. copycat business may join the market and erode profits

Question 15

benefit of being a late mover

Answer 15

1. the advantage of learning from those who have moved earlier

Question 16

what are the different modes of entry

Answer 16

1. exporting
2. franchising/ liscensing
3. joint venture
4. wholly owned subsidiary.

there is growing control and investment the further you go down the list.

Question 17

what is a predator strategy

Answer 17

predator strategy” refers to a competitive approach where a company aggressively seeks to dominate or eliminate its rivals in the market.

Question 18

methods of a predator strategy

Answer 18

1. Predator pricing
2. innovative and high investment into R&D
3. vertical intergration

Question 19

what is the difference between related and unrelated differentiation.

Answer 19

related- expanding into products or services with relationships to the existing business

unrelated- expanding into product or services beyond the current capabilities and value configuration, i.e. with no relationships to existing business.

Question 20

when refering to geographical expansion what does limited international scope compared to extensive international scope mean.

Answer 20

limited international scope- French company expanding to Germany

extensive- french company expanding to China.

Question 21

benefits and drawbacks of organic growth

Answer 21

+maintain control and profits
+easy integration

-slow and risky
- may face resource barriers

Question 22

benefits and drawbacks of M&A

Answer 22

+fast access to new market and resources
-integration problems
-expensive

Question 23

benefit and drawbacks of alliances

Answer 23

+Gradual/reversible move
+Limit involvement
+learning opportunities

-share profits
-may create a competitor

Question 24

MNE / MNC definition

Answer 24

A multinational enterprise or corporation is a company that has business operations in at least one country other than its home country.

Question 25

what is a DMNE

Answer 25

Developed Markets: These are countries that have reached a high level of economic development, typically characterized by advanced industrialization, high per capita income, and well-established infrastructure. Examples include the United States, Germany, Japan, and the United Kingdom.

Question 26

What is an EMNE

Answer 26

Emerging markets typically have lower per capita income levels, developing infrastructure, and a growing middle class. They offer significant growth opportunities for investors due to their expanding consumer markets and untapped resources. Examples include China, India, Brazil, and South Africa. Newly industrialised like singapore

Question 27

what is the intergration responsiveness framework used for

Answer 27

The framework aims to help MNCs strike a balance between two conflicting pressures: Global Integration: This refers to the extent to which a company seeks to standardize its operations and products/services across different markets. Local Responsiveness: This refers to the ability of a company to adapt its products/services, marketing strategies, and operations to meet the specific needs and preferences of local markets.

Question 28

name the 4 sections of the integration responsiveness framework

Answer 28

Global Transnational International Localisation

Question 29

describe the global intergration model

Answer 29

MNCs following this strategy prioritize global integration over local responsiveness. They strive for standardization of products, processes, and marketing strategies across all markets to achieve economies of scale and cost efficiencies. (McDonalds, Coke, Ikea)

Question 30

describe transnational integration

Answer 30

They seek to leverage economies of scale and global synergies while also adapting to local market conditions and preferences. (Toyota and samsung)

Question 31

describe localised integration

Answer 31

focus on individual customer market needs

Question 32

describe international strategy

Answer 32

prioritize global integration nor local responsiveness.

Question 33

open innovation definition

Answer 33

collaborative research among various internal units and with external organizations

Question 34

how does open innovation work in practice

Answer 34

1. Aquire start ups 2. strategic alliances with competitors 3. hire top talent from other companies

Question 35

barriers to open innovation

Answer 35

1. cultural differences 2. Trust and transparency issues. Some countries have weaker IPR regimes and unclear legal norms. 3. discrepancies in risk appetite

Question 36

what are weak signals examples of weak signals

Answer 36

Weak signals are often early indicators of potential disruptions, market shifts, or emerging trends. social media mentions, search engine data

Question 37

what is dynamic pricing?

Answer 37

is a pricing strategy in which businesses adjust the prices of their products or services in real-time

Question 38

what is SDG washing

Answer 38

sustainable development goals. "SDG washing" refers to the practice of misrepresenting or overstating the extent to which a company or organization contributes to the United Nations Sustainable Development Goals (SDGs) without genuinely aligning their activities with the goals.

Question 39

global supply chains

Answer 39

global supply chains” refers to the cross-border organization of the activities required to produce goods or services and bring them to consumers through inputs and various phases of development, production and delivery.

Question 40

why pollution environmental concerns may persist in a global supply chain

Answer 40

1. MNCs place orders that exceed suppliers’ capacity or impose unrealistic deadlines. 2. Most lower-tier suppliers are not well known, so they receive relatively little attention and pressure from the media, NGOs, and other stakeholders.