Business Strategy Chapter 9

Which three of the following are categories of cost drivers of internationalization?

	Similar customer needs	Country-specific differences	Favourable logistics	Scale economies

Interdependence between country operations increases the pressure for global coordination.

	Similar customer needs	Country-specific differences	Favourable logistics	Scale economies

Some brands, such as Coca-Cola, are able to successfully market in very similar ways around the world. What is this called?

Scope economies

Transferable marketing

Favourable logistics

Global customization

Porter’s Diamond has been used by governments aiming to increase the competitive advantage of their local industries. Which of the following are examples of this?

Governments are encouraged competition rather than protect home-based industries.

Governments have encouraged the growth of industries previously unrepresented in the local economy.

Governments have encouraged the growth of clusters of related industries.

Governments have raised tariff barriers to protect local industries.

Internationalization is increasingly not about exploiting the existing capabilities in new national markers.

Governments are encouraged competition rather than protect home-based industries.

Governments have encouraged the growth of industries previously unrepresented in the local economy.

Governments have encouraged the growth of clusters of related industries.

Governments have raised tariff barriers to protect local industries.

What name is given to the purchase of components and services from the most appropriate suppliers around the world regardless of location?

Global Sourcing

The global-local dilemma

Multidomestic marketing

International compartmentalization

The global-local dilemma in international strategy means:

The issues related to globalization and the alleged disadvantaging of developing countries.

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

Whether to centralize strategic decisions in head office or to devolve decisions making to subsidiaries

How many local people to employ in foreign subsidiaries

Which international strategy has a dispersed configuration and low levels of coordination of international activities?

Global

Transnational

Multidomestic

Export

What do the four elements of Gehemawat’s CAGE represent?

Country distance, administrative and political distance, geographical distance, and environmental distance

Cultural distance, administrative and political distance, geographical distance, and economic distance.

Cultural distance, administrative and political distance, geographical distance, and environmental distance.

Country distance, administrative and political distance, gross distance, and economic distance.

Which three of the following are the key factors to consider when assessing international retaliation?

Five Forces analysis

The attractiveness of the market to the new entrant

The PESTEL factors

The clout that a defender can muster

The reactiveness of the defender

What term is used for an approach where firms initially use entry modes that allow them to maximize knowledge acquisition while minimizing the exposure of their assets?

International competitor elimination

Foreign direct investment

Staged international expansion

Multidomestic expansion

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