Global Strategy and Expansion Flashcards

The growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology.

• Economies of scale
• Global experience
• Product differentiation
• Proprietary technology
• Mobility of production

• High transportation and storage costs
• Low worker productivity
• Need for product customization
• Difficulty accessing distribution channels
• Government barriers
• Capital constraints
• Complexity and unpredictability

Selling products through an intermediary in the foreign country.

Managing international sales and distribution independently.

Companies that own or control operations in more than one country.

Cultural, Administrative (or Political), Geographic, and Economic distances.

• Company Strategy, Structure, and Rivalry
• Factor Conditions
• Related and Supporting Industries
• Local Demand Conditions

They coordinate efforts to achieve shared goals related to trade and economic cooperation, reducing or eliminating barriers to trade.

• Reduction in the cost of trade
• Improved availability of goods and services
• Wider selection of goods and services for consumers
• Increased efficiency across industries

• Free trade zones
• Customs unions
• Common markets

A company sells the rights to use proprietary knowledge to a foreign partner.

A longer-term relationship where a franchisor licenses the use of intangible assets to a franchisee under strict operational guidelines.

Two or more firms collaborate in creating and marketing a product, potentially involving equity sharing or creating a separate joint entity.

Cooperative agreements between companies to work toward shared objectives, often involving knowledge sharing or market access.