Lecture 4

Question 1

Cost leadership characteristics

Answer 1

-Process improvements
-Small staff, few layers
-Quantitative goals, incentives for cost reduction

Question 2

Product differentiation characteristics

Answer 2

-Cross-functional product development teams
-Autonomy with guidelines
-Multidimensional goals, rewards for risk-taking

Question 3

Eclectic paradigm

Answer 3

Advantages in:
-Ownership
-Location
-Internalization

Question 4

Uppsala Model

Answer 4

Firms internationalization decisions evolve gradually from culturally similar to dissimilar countries