Strat 8

Question 1

When a home market becomes “mature” (growth slows down), companies look for emerging middle classes in regions like Southeast Asia or Africa.

Answer 1

The Search for New Markets

Question 2

By increasing volume, a firm can spread fixed
costs (like R&D for a new pharmaceutical drug) over a larger number of units,
reducing the cost per unit.

Answer 2

Economies of Scale and Scope

Question 3

Often called “Reverse Innovation.
“ A company might move
to a tech hub like Tel Aviv or Shenzhen not to sell, but to learn from the local
ecosystem and bring those ideas back home

Answer 3

Knowledge Seeking

Question 4

Detailed Motives

Answer 4

The Search for New Markets
Economies of Scale and Scope
Knowledge Seeking

Question 5

‘PUSH’ AND ‘PULL’ OF GLOBALIZATION

Answer 5

Detailed Motives
The Complexity of Risk

Question 6

The Complexity of Risk

Answer 6

Liability of Foreignness
Currency/Forex Risk

Question 7

If a company earns revenue in Japanese Yen but pays its
debt in US Dollars, a sudden shift in exchange rates can wipe out an entire
year’s profit regardless of how well the business is performing operationally

Answer 7

Currency/Forex Risk:

Question 8

This is the “hidden tax” of doing business abroad. It
includes the lack of roots in local networks, being unfamiliar with local
“unwritten rules,” and the potential for discriminatory treatment by local
consumers or governments.

Answer 8

Liability of Foreignness

Question 9

FOUR MAIN INTERNATIONAL
CORPORATE STRATEGIES

Answer 9

INTERNATIONAL STRATEGY
MULTI-DOMESTIC STRATEGY
GLOBAL STANDARDIZATION STRATEGY
TRANSNATIONAL STRATEGY

Question 10

is dictated by the
Integration-Responsiveness (IR) Grid.

Answer 10

Strategic choice

Question 11

This framework weighs the need for global
efficiency against the need to cater to
local tastes

Answer 11

Strategic choice

Question 12

This is the most “home-centric”
approach.

Answer 12

INTERNATIONAL STRATEGY

Question 13

Companies sell products
developed for their domestic market with
minimal local adaptation.

Answer 13

INTERNATIONAL STRATEGY

Question 14

This works well
when the brand has high prestige (e.g.,
Harley-Davidson or Rolex), where the
“foreignness” is part of the appeal

Answer 14

INTERNATIONAL STRATEGY

Question 15

MULTI-DOMESTIC STRATEGY motto

Answer 15

“Maximum Local Responsiveness.”

Question 16

Every country manager has significant autonomy.

Answer 16

MULTI-DOMESTIC STRATEGY

Question 17

Products, marketing, and even supply chains are customized for each nation.

Answer 17

MULTI-DOMESTIC STRATEGY

Question 18

Example: Nestlé alters the formula of its chocolates and coffees to match the specific sweetness or bitterness preferences of different regions

Answer 18

MULTI-DOMESTIC STRATEGY

Question 19

This is the “One Size Fits All” approach.

Answer 19

GLOBAL STANDARDIZATION STRATEGY

Question 20

It focuses heavily on cost reduction through standardization.

Answer 20

GLOBAL STANDARDIZATION STRATEGY

Question 21

The goal is to reap maximum economies of scale.

Answer 21

GLOBAL STANDARDIZATION STRATEGY

Question 22

Example: Lenovo or Apple. An iPhone sold in Paris is virtually identical to one sold in New York, allowing for massive manufacturing efficiency.

Answer 22

GLOBAL STANDARDIZATION STRATEGY

Question 23

The most complex and “ideal” state.

Answer 23

TRANSNATIONAL STRATEGY

Question 24

It attempts to be both high-efficiency (low cost) and high-responsiveness (local flavor).

Answer 24

TRANSNATIONAL STRATEGY

Question 25

It requires a "glocial" mindset—global reach with local touch.

Answer 25

TRANSNATIONAL STRATEGY

Question 26

Example: McDonald's. They use a global standardized supply chain and brand identity but offer the "McSpicy Paneer" in India and the "Teriyaki Burger" in Japan.

Answer 26

TRANSNATIONAL STRATEGY

Question 27

The choice of entry mode is a trade-off between how much capital you want to risk and how much control you need over your brand and operations.

Answer 27

MODES OF FOREIGN ENTRY: RISK VS. CONTROL

Question 28

_____ is a trade-off between how much capital you want to risk and how much control you need over your brand and operations.

Answer 28

The choice of entry mode

Question 29

The oldest form of internationalization.

Answer 29

EXPORTING (LOW INVOLVEMENT)

Question 30

It’s great for testing the waters.

Answer 30

EXPORTING (LOW INVOLVEMENT)

Question 31

However, you are at the mercy of shipping costs and "Trade Barriers" (tariffs).

Answer 31

EXPORTING (LOW INVOLVEMENT)

Question 32

You sell the rights to your intellectual property.

Answer 32

LICENSING AND FRANCHISING (CONTRACTUAL)

Question 33

is common in manufacturing (e.g., a local bottler producing Coca-Cola).

Answer 33

Licensing

Question 34

is common in services (e.g., Subway).

Answer 34

Licensing

Question 35

You get a "royalty," but if the local partner provides poor service, your global brand reputation suffers.

Answer 35

Licensing

Question 36

You create a third, legally independent company with a local partner.

Answer 36

STRATEGIC ALLIANCES AND JOINT VENTURES (PARTNERSHIP)

Question 37

This is often required by law in some countries (like China in certain sectors).

Answer 37

STRATEGIC ALLIANCES AND JOINT VENTURES (PARTNERSHIP)

Question 38

It helps navigate local politics but carries the risk of "Knowledge Leakage"—your partner might learn your secrets and become a competitor

Answer 38

STRATEGIC ALLIANCES AND JOINT VENTURES (PARTNERSHIP)

Question 39

ACQUISITIONS AND GREENFIELD are aka

Answer 39

(WHOLLY OWNED)

Question 40

are fast.

Question 41

are fast.

Answer 41

Acquisitions

Question 42

You buy the customers, the staff, and the brand immediately.

Answer 42

Acquisitions

Question 43

The downside? "Post-merger integration" is notoriously difficult.

Answer 43

Acquisitions

Question 44

Acquisitions downside

Answer 44

"Post-merger integration"

Question 45

mean building from the ground up.

Answer 45

Greenfield Ventures

Question 46

It’s slow and expensive, but you ensure the corporate culture is exactly what you want from Day 1.

Answer 46

Greenfield Ventures

Question 47

CAGE FRAMEWORK

Answer 47

CULTURAL DIFFERENCES ADMINISTRATIVE AND POLITICAL DIFFERENCES GEOGRAPHIC AND ECONOMIC IMPACT

Question 48

This impacts how you manage people. In "High-Context" cultures (like Japan), communication is indirect. A "Yes" might mean "I hear you," not "I agree." In "Low-Context" cultures (like Germany), "No" means "No." Managers must adapt their leadership style or risk total organizational breakdown.

Answer 48

CULTURAL DIFFERENCES

Question 49

In _____cultures (like Japan), communication is indirect.A "Yes" might mean "I hear you," not "I agree."

Answer 49

"High-Context"

Question 50

In ___ cultures (like Germany), "No" means "No." Managers must adapt their leadership style or risk total organizational breakdown.

Answer 50

"Low-Context"

Question 51

This includes everything from the legal system (Common Law vs. Civil Law) to the level of corruption.

Answer 51

ADMINISTRATIVE AND POLITICAL DIFFERENCES

Question 52

Strategic decisions are often based on "Institutional Voids"—if a country lacks a reliable legal system to enforce contracts, a firm might choose a Joint Venture with a powerful local family rather than trying to go it alone.

Answer 52

ADMINISTRATIVE AND POLITICAL DIFFERENCES

Question 53

are often based on "Institutional Voids"—if a country lacks a reliable legal system to enforce contracts, a firm might choose a Joint Venture with a powerful local family rather than trying to go it alone.

Answer 53

Strategic decisions

Question 54

Strategic decisions are often based on _____if a country lacks a reliable legal system to enforce contracts, a firm might choose a_____ with a powerful local family rather than trying to go it alone.

Answer 54

"Institutional Voids", Joint Venture