Learn smart 7 Flashcards
(43 cards)
Focusing on a limited number of locations can increase a companys competitive advantage when
- Manufcacturing costs are lower in a certain area
- a large learning curve is associated with a particular task
another way to define the concept of multi domestic strategy is as a
-Think-local, art-local approach
what is way a company can successfully compete in a developing country market, as shown by japans Suzuki when it entered india?
change the local market to match the companys core operations
What are policies that governments adopt to stimulate business investment
- Offering low cost business loans
- Providing government-sponsored job training
An International strategy is a companys strategy for competing in two or more_____ simultaneously
countries
To be successful, a think-global, act-global approach generally requires which of the following?
- centralized production
- a global brand name
The practice of operating on very thing margins coupled with healthy profits to acquire a profit sanctuary is known as
cross-market subsidization
acquiring a foreign company as a means of entering a foreign market can allow a business to do which of the following?
- Build supplier relationships
- Avoid the risks of greenfield venture
- Gain access to local distribution channels
Which statements about greenfield ventures are true?
- They are subject to a high level of risk
- They are costly
- They require many company resources
in terms of a country business climate, a country’s inflation rate and level of deficit spending are types of
Economic risk
a company that distributes its activities across multiple location can seek which advantages?
_ lowering distribution costs
_ providing customer with timely service and technical support
_reducing the risks of fluctuating exchange rate
The strategic option of home based production and export allows a company to do what?
- Minimize its direct investment in foreign countries
- limit its involvement in foreign markets
A Company that wishes to control all aspects of its operation when it expands into foreign markets should establish a
wholly owned subsidiary
A company seeking to establish a subsidiary in a foreign country may choose to establish a greenfield venture if an internal startup
- costs less than an acquisition
- can gain good distribution access
- can successfully compete w local rivals
For domestic manufacturs,positive aspects of a weak domestic currency include
- reduced domestic demand for foreign made good
- lower prices for domestic products
what do companies commonly risk losing when they develop joint ventures with companies in a foreign country ?
Their competitive advantage
What are reasons that companies expand into foreign markets?
- To gain access to new customers
- to achieve lower costs
- to gain access to low cost production
Spurring market growth in a domestic market can translate into an international competitive advantage owing to which of the following?
increasing innovation and quality improvements
Producing goods in domestic plants and exporting them is considered
a conservative way to enter a foreign market
a transitional strategy is a ____ approach
think-global, act-local
Which factors make dispersing a companys activities competitively important
?
- Major customers in areas without low-cost production
- Threat of supply interruptions
- Trade barriers to importing maufactured goods
Focusing on a limited number of locations can increase a companys competitive advantage when
- manufacturing costs are lower in a certain area
- a large learning curve is associated with a particular task
Elements of a countrys infrastructure that can contribute to factor conditions include
- banking systems
- transportation
- communication
Companies typically move into foreign markets to
exploit their competitive core competencies
