+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
In selecting geographic sites, what two things must firms decide?
|
1. where to market their products2. where to produce their products
|
|
What is the best and most important way to learn about a country?
|
Go there yourself
|
|
What are the two basic techniques countries use to analyze potential countries?
|
1. Scanning: based on broad aspects, identifying opportunities and risks2. detailed examination: on site visits, analyze specific information
|
|
What is is called when a firm decides on a country, regardless of its merits, simply because they've spent so much time and money researching it?
|
Escalation of commitment
|
|
***What are some of the most important factors when determining country selection? (outline for the following questions)
|
-market size-ease and compatibility of operations (language, legal system, culture, laws, customs, infrastructure)-costs and resources available-red tape and corruption
|
|
What is the most important consideration for country selection?
|
Market size (ie. sales potential)
|
|
What are some factors to be considered regarding market attractiveness?
|
-leapfrogging of products-price levels -income levels-income inequalities-substitute products-trading blocs-taste and other cultural factors
|
|
In regards to ease and compatibility of operations when selecting a foreign country, what features of countries are firms attracted to?
|
-located nearby-common language-similar market conditions-few market restrictions
|
|
What are some decision points affecting a firms choice of a country? (ease of compatibility)
|
-familiarity to managers-countries allowable level of ownership (ie. China)-availability of local resources
|
|
Regarding the cost and productivity factor of country opportunities, what are some productivity related decision factors?
|
Cost of labortax ratesavailable capital costscost of other inputs and suppliesutility costsrealestate coststransportation costs
|
|
What is bureaucracy that slows things down? (like a law waiting to be processed, takes forever)
|
Red tape
|
