Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
17 Cards in this Set
- Front
- Back
|
Industry boundaries do not stop at ________ |
national boarders. |
|
|
Four attributes of national competitive advantage. (The diamond) |
1. Factor endowments 2. Local Demand Conditions 3. Related and supporting industries 4. Firm strategy, structure, and rivalry |
|
|
Nation’s position in factors of production necessary to compete in an industry |
Factor Endowments |
|
|
Nature of home demand for the industry’s product or service |
Local demand conditions |
|
|
Presence or absence in the nation of supplier and related industries that are internationally competitive |
Related and supporting industries |
|
|
Conditions in the nation governing: 1. How companies are created, organized, and managed 2. Nature of domestic rivalry |
Firm strategy, structure, andrivalry |
|
|
Multinational companyis one that does business in_________ |
two or more national markets. |
|
|
For some companies, international expansion represents a way of earning greater returns by ____________ |
transferring the skills and product offerings derived from their distinctive competencies to markets where indigenous competitors lack those skills. |
|
|
By building sales volume more rapidly, international expansion can help a company gain cost advanatage through _________ & _________. |
the realization of of scale economies and learning effects. |
|
|
The best strategy for a company to pursue depends on __________ |
the pressures it must cope with; pressures for cost reduction or local responsiveness. |
|
|
Pressures for cost reductions are greatest in industries producing what kind of products? |
commodity type products |
|
|
Pressures for local responsiveness arise from ________ |
differences in consumer tastes and preferences, as well as from national infrastructure and traditional practices, distribution channels, and host government demands. |
|
|
Companies producing a _________ strategy transfer the skills and products derived from distinctive competencies to foriegn markets , while undertaking some limited local customization. |
international strategy |
|
|
companies pursuing a _________ strategy customize their product offerings, marketing, strategies, and business strategies to national conditions. |
localization strategy |
|
|
companies pursuing a ___________ strategy focus on reaping the cost reductions that com from scale economies and location economies. |
global standardization strategy |
|
|
many industries are now so competitive that companies must adopt ___________ strategy which is _____________. |
transnational strategy: This involves a simultaneous focus upon reducing costs, transferring skills and products, and being locally responsive. Difficult. |
|
|
What are the five ways of entering a foreign market? |
1. Exporting 2. licensing 3. franchising 4. joint venture 5. wholly owned subsidiary |
