Differ significantly between countries.
Differ slightly between countries.
Are universally alike.
Are cyclical in nature.
None of the above.
Exporting
Licensing
Joint ventures
Wholly owned subsidiaries
Joint ventures and wholly owned subsidiaries
Having one partner handle daily operations.
Selecting the right partner.
Sharing all knowledge.
Enforcing one culture for both partners.
Reducing investment in the alliance to a minimum.
Tariff barriers
Transportation costs
Location diseconomies
Prime interest rates
Delegation of marketing activities to a local agent
Global market standardization is not possible, and there are no significant economies of scale to be realized from centralizing global manufacturing.
Global market standardization is possible, but there are no significant economies of scale to be realized from centralizing global manufacturing.
Global market standardization is not possible, but there are significant economies of scale to be realized from centralizing global manufacturing.
Global market standardization is possible, and there are significant economies of scale to be realized from centralizing global manufacturing.
Consumer tastes and preferences differ among national markets, and economies of scale are substantial.
Expansion of overseas sales.
Better utilization of production facilities.
Boosting bargaining power with suppliers.
Increasing cost savings through learning effects.
All of the above.
Procter & Gamble
Ford
Toyota
All of the above
None of the above
Size of the market.
Existing wealth of consumers in that market.
Likely future wealth of consumers in that market.
Political stability of that market.
Age of the country.
Is feasible only for large companies.
Can enable companies to increase their profitability and grow their profits more rapidly.
Allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them.
Requires locating facilities in foreign countries.
Makes sense for manufacturing firms but not for service firms.
Transnational strategy.
International strategy.
Localization strategy.
Joint venture.
Global standardization strategy.
Can realize location economies.
Can engage in global strategic coordination.
Can realize experience-curve effects.
Can realize experience-curve effects. risks losing control over its technology to the venture partner. risks losing control over its technology to the venture partner.
Can engage in global strategic coordination and realize experience-curve effects.
Licensing limits a company's ability to coordinate strategic moves across countries.
A company may lose control of its technology.
A company may lose control over its manufacturing, marketing, and strategic functions.
All of the above.
None of the above.
Nondemanding purchasers.
Able to obtain products or services in other countries.
Sophisticated and demanding.
Willing to spend money on novelties.
Not willing to accept low-priced products.
There has been a dramatic lowering of barriers to international trade.
Tariff rates on manufactured goods traded by advanced nations have fallen.
Regulations prohibiting foreign companies from entering domestic markets and establishing production facilities have been removed.
The volume of world trade has increased dramatically.
All of the above.
Licensing.
Franchising.
Exporting.
Forming a joint venture.
Setting up a wholly owned subsidiary in the host country.
Differences in distribution channels
Increasing national wealth
Great transportation needs
High switching costs
Price as the main competitive weapon in a market
Is a step in partner selection.
Requires the ability to share skills with partners.
Requires the ability to learn from alliance partners.
Is a way to minimize opportunism.
Requires the ability to share skills with and learn from alliance partners.
Commodity-type products.
Highly differential products.
Goods that do not compete on the basis of price.
Goods servicing narrowly defined markets.
Highly advertised goods.
Products that need to be customized to local requirements.
Commodity-type products that serve universal needs.
Low-weight, high-value products that can be differentiated by global companies.
Products that can be economically manufactured in small batches.
Companies competing in industries where they face a large number of multinational competitors.
Land
Labor
Raw materials
Ethnic diversity
Managerial sophistication
Size of the market
Purchasing power
Consumer demand for the company's product
Economic risks
All of the above
Exporting from the home country and letting a foreign agent organize local marketing
Licensing
Franchising
Entering into a joint venture with a foreign company to set up overseas operations
Setting up a wholly owned subsidiary
Leveraging its existing products.
Taking the path of least resistance.
Engaging in product positioning.
Realizing cost economies from global expansion.
Realizing location economies.
The firm must have incentives for local managers to share knowledge and ideas.
The firm's managers must be aware that competencies can develop anywhere.
The firm must be pursuing a strategy of differentiation.
The firm's managers must help to transfer competencies around the company.
The firm must offer incentives that encourage employees to take necessary risks.
There are relatively few differences from one location to another.
Consumer tastes and preferences are universally similar.
Consumer tastes and perferences differ substantially across nations.
There is no need to customize products.
Local demand and national demand are equal.