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16 Cards in this Set
- Front
- Back
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The degree of difference between the cultures of two nations. |
Cultural Distance |
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The degree of differences between the legal and regulatory frameworks of two nations. |
Administrative Distance |
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The distance in miles, or kilometers, between two countries. |
Geographic Distance |
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The degree of difference between the average incomes of people in two different countries. |
Economic Distance |
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A firm’s adjustments to products, services, and processes in order to account for local culture and needs |
Local Responsiveness |
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Making products and/or processes consistent across different units within a firm and/or across different countries the firm operates in. |
Standardization |
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The standardization of processes within a single business in different locations around the world. |
Global Integration |
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emphasizes local responsiveness over standardization |
Multidomestic Strategy |
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emphasizes global standardization and economies of scale over local responsiveness |
Global Strategy |
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takes advantage of country-comparative advantages – sources of low cost (cheap labor) or unique resources (skilled workers) |
Arbitrage Strategy |
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Sending goods or services to another country for sale |
Exporting |
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Granting another business the permission to use or sell a firm’s product, technology, or process. |
Licensing |
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A license that allows a person or firm access to a business’s proprietary knowledge, processes, or trademarks in order to allowthem to sell a product or service under their business name. |
Franchising |
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An agreement between two businesses to cooperateon a mutually beneficial project. It usually involves the sharing of resources and/or knowledge. |
Alliances |
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An alliance between firms involving the creation of a new entity where both firms provide assets and/or knowledge, processes, ortechnology. |
Joint Ventures |
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A unit in a foreign country that is wholly owned by the parent company. |
Wholly Owned Subsidiaries |
