favorable tax concessions and economic incentives by home-country governments. U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of: consumer needs, political and legal structures, and social norms vary by country .
Which of the following is a reason to having an international strategy?
A reason that firms use international strategies is to secure needed resources, especially minerals and energy . In some industries, technology drives globalization because the economies of scale necessary to reduce costs cannot be met by competing in domestic markets alone.
What is the reason that a large domestic market can provide the country’s industries a chance at dominating the world market?
A large domestic market can provide the country’s industries a chance at dominating the world market because: they have been able to develop economies of scale at home . In addition to the four basic dimensions of Porter’s “diamond” model, — may also contribute to the success or failure of firms.
What is an international diversification strategy?
International diversification. The attempt to reduce risk by investing in more than one nation . By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns.
What is the focus of the international corporate level strategy?
The three corporate-level international strategies are cost leadership, differentiation, and focus. markets located in other countries. service are important in Porter’s determinants of national advantage. country to support businesses that can successfully compete in international markets.
What are the four international strategies?
Multinational corporations choose from among four basic international strategies: (1) international (2) multi-domestic, (3) global, and (4) transnational . These strategies vary depending on two pressures; 1) on emphasizing low cost and efficiency and 2) responding to the local culture and needs.
What are the three types of international strategy?
There are three main international strategies available: (1) multidomestic, (2) global, and (3) transnational (Figure 7.23 “International Strategy”).
What is a global strategy when do companies prefer a global strategy?
A global strategy is one that a company takes when it wants to compete and expand in the global market . In other words, a strategy businesses pursue when they wish to expand internationally. A global strategy refers to the plans an organization has developed to target growth beyond its borders.
What are the attributes of a successful acquisition program?
- They’re focused. ...
- They have a strategic plan. ...
- They know their own strengths and weaknesses. ...
- They get the word out. ...
- They have multiple targets. ...
- They get good advice. ...
- They take their time.
Which of the following is not an advantage associated with putting facilities in other countries?
Which of the following is NOT an advantage associated with putting facilities in other countries? low-cost labor .
What are the risk of international diversification?
They may lead to changes in inflation and interest rates , which in turn may affect stock prices. An act of terrorism can also lead to a downturn in economic activity and a fall in stock prices. Currency risk – The risk of losing money because of a movement in the exchange rate.
What are the benefits of international diversification?
It boosts the Nations’ economy: Global diversification can help boost the economy with the international gains from the various investments made. It increases the currency exchange rate : It has a long term effect increase on the country’s portfolio and the portfolio is less prone to risks.
What are limitations of international diversification?
International Portfolio Limitations
Increased Transaction Costs : Investors typically pay more in commission and brokerage charges when they buy and sell international stocks, which reduces their overall returns. Taxes, stamp duties, levies, and exchange fees may also need to be paid, which dilute gains further.
What are the three international corporate level strategies What are the advantages and disadvantages associated with these individual strategies?
The three international corporate level strategies are: multidomestic, global, and transnational strategy . build the local market share; however its disadvantage is that it is less knowledge sharing and the inability to develop economies of scale.
What is international strategy and why is it important?
International strategy is a business plan or strategy created by a company to do its business in international markets . An international strategy requires analyzing the international market, studying resources, defining goals, understanding market dynamics & develop offerings.
What are the four basic strategies of international business?
The two dimensions result in four basic global business strategies: export, standardization, multidomestic, and transnational . These are shown in the figure below. International business strategies must balance local responsiveness and global integration.
