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15 Cards in this Set
- Front
- Back
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International Strategy |
A strategy through which the firm sells its goods or services outside its domestic market. |
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Multidomestic Strategy |
An international strategy in which strategic and operating decisions are decentralized to the strategic business units in individual countries or regions for the purpose of allowing each unit the opportunity to tailor products to the market. |
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Global Strategy |
An international strategy in which a firm's home office determines the strategies business units are to use in each country or region |
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Transnational Strategy |
International strategy through which the firm seeks to achieve both global efficiency and local responsiveness. |
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Greenfield Venture |
Entry mode through which a firm invests directly in another country or market by establishing a new wholly owned subsidiary. |
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International Diversification strategy |
A strategy through which a firm expands the sales of its goods or services across the borders of global regions and counties into a potentially large number of geographic locations or markets. |
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Characterisitcs of Multidomestic Strategy |
HIGH need for local responsiveness LOW need for global integration |
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Characterisitcs of Transnational strategy |
HIGH need for local responsiveness HIGH need for global inegration |
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Characterisitcs of Global Strategy |
LOW need for local responsiveness HIGH need for global integration |
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Modes of Entry |
1. Exporting 2. Licensing 3. Strategic Alliances 4. Acquisitions 5. New wholly owned subsidiary |
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Characteristics of Exporting |
High cost, low control |
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Characteristics of Licensing |
low cost, low risk, little control, low returns |
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Characteristics of Strategic Alliances |
shared costs, shared resources, shared risks, problem of integration |
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Characteristics for Acquisitions |
quick access to new markets, high costs, complex negotiations, problems of merging with domestic operations |
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Characteristics of new wholly-owned subsidiary |
complex, often costly, time consuming, high risk, maximum control, potential above-average returns |
