Details Title: International Strategy Description: Final Exam Total Flash Cards: 18 Created: 04/27/2008 12:57:19		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional International Studies Flashcards
Cards in this set: Term     What are some traditional reasons the firms internationalize? Definition Competitors going global Trade barriers Regulations and restrictions (operating enviroments) Customer demands Secure key supplies Saturated home market Market-seeking Economies of scale and scope Low-cost factors of production Incentives (tax advant.) Diversity risk Exploit an advantage of being foreign Prestige Proximity (avoid shipping costs) Term     What are some emerging reasons the firms internationalize? Definition Technological developments in production Escalating R&D costs Shortening product life cycles Scanning and learning capabilities Competitive positioning Term     According to Gupta and Govindarajan, what two dimensions determine the strategic importance of a market? Definition 1) Learning potential-Presence of sophisticated and demanding customers for the product/service. The pace at which relevant technologies are evolving there 2) Market potential-Current market size and growth expectations   Term     According to Gupta and Govindarajan, what are the 4 strategies for winning against global competitors? Definition Aquiring a dominant local competitor Acquiring a weak player Enter a poorly defended niche Frontal Attack Term     When is an accelerated speed for global expansion appropriate? (Gupta and Govindarajan) Definition It is easy for competitors to replicate your recipe for success Scale economies are extremely important Mgt.'s capacity to manage global operations is high Term     What are some of the myths and misunderstandings of global strategies as discussed by Kanter and Dretler? Definition Global is syn. w/intl. meaning simply having a presence in other countries whether or not there is any connection amoung activies across countries The global stategy means doing everything the same everywhere Globalizing means becoming a stateless corporation w/no national or community ties Globalization requires abandoning country images and values Globalization means tacking on acquisitions or allowances in other countries, w/o much integration or change That to qualify as global, a strategy must involve sales or operations in another country Term     What are some advatages to exporting strategies? Definition low cost economies of scale low risk Term     What are some advatages to licensing strategies? Definition low cost and risks quick access to foreign markets royalties Term     What are some advatages to joint venture strategies? Definition cost sharing risk sharing knowledge sharing discourage mistrust of foreigners Term     What are some advatages to greenfield strategies? Definition pick the site that maximizes location economies build new and modern facilities no prior history or labor troubles Term     What are some advatages to acquisition strategies? Definition Ideal when the aquired firm has competitive advantage Quick Term     What are some disadvatages to exporting strategies? Definition shipping costs setting and distribution system buying foreign advertising far away from customers (hard for communication) trade barriers and import regulations Term     What are some disadvatages to licensing strategies? Definition Difficult to control the licensee (counterfieting) Educating a potential competitor Low income May move the opportunity to enter the country through other means because the licensee has exclusive rights to trademark technologies in their countries Term     What are some disadvatages to joint venture strategies? Definition Time, complex negotiations required Lack of decision-making autonomy and control Cultural/managerial conflict Knowledge sharing (loss of technology) Term     What are some disadvatages to greenfield strategies? Definition Timely Expensive Extensive recruitment and training Term     What are some disadvatages to acquisitions strategies? Definition Complicated negotiations and financial transactions Legal/political hurdles Buying the problems of the acquired firm Term     What is guanxi? Definition Means relationship or connection in Chiense. Term     How can a company manage its quanxi? Definition -organizational quanxi is based on individual quanxi -strengthed by multiple personal quanxi among the staff -quanxi aduits