BPL 5100 FINAL EXAM QUESTIONS AND ANSWERS
Profiting From Global Expansion: - Earning high returns from transferring distinctive competencies to foreign markets.
Realizing location economies
Moving down the experience curve
Global expansion and business-level strategies
Realizing loc...
Profiting From Global Expansion: - Earning high returns from transferring distinctive
competencies to foreign markets.
Realizing location economies
Moving down the experience curve
Global expansion and business-level strategies
Realizing location economies - Using lower-cost locations reduces overall costs and
fosters product differentiation for premium pricing
Moving down the experience curve - Larger global markets = more accumulated
volume
Global expansion and business-level strategies - Linked by cost reductions and value
creation
Pressures for cost reductions: - Global competitors seek to minimize unit costs through
location economies and attain low-cost competitor status
In commodity-type product industries, intense price competition predominates strategic
concerns
Pressures for local responsiveness arise from: - Differences in local consumer tastes
and preferences.
Differences in infrastructure and traditional practices.
Differences in distribution channels among countries.
Host government economic and political demands.
International strategy - Create value by transferring skills
and products abroad
Multi-domestic strategy - Maximize local responsiveness by
customizing products and marketing
strategy for local markets
Global strategy - Pursue low-cost status, offer standardized global products
Transnational strategy - Use global learning to achieve low-cost status, differentiation,
and local responsiveness simultaneously
, Pressures for cost reductions: Low
Pressures for local responsiveness: Low - International Strategy
Pressures for cost reductions: High
Pressures for local responsiveness: Low - Global Strategy
Pressures for cost reductions: Low
Pressures for local responsiveness: High - Multi-Domestic Strategy
Pressures for cost reductions: High
Pressures for local responsiveness: High - Transnational Strategy
International Strategy Advantages - Transfer of distinctive competencies to foreign
markets
International Strategy Disadvantages - Lack of local responsiveness
Inability to realize location economies
Failure to exploit experience-curve effects
Global Strategy Advantages - Ability to exploit experience-curve effects
Ability to exploit location economies
Global Strategy Disadvantages - Lack of local responsiveness
Multi-Domestic Strategy Advantages - Ability to customize product offerings and
marketing in accordance with local responsiveness
Multi-Domestic Strategy Disadvantages - Inability to realize location economies
Failure to exploit experience-curve effects
Failure to transfer distinctive competencies to foreign markets
Transnational Strategy Advantages - Ability to exploit experience-curve effects
Ability to exploit location economies
Ability to customize product
offerings and marketing in accordance with local responsiveness
Reaping benefits of global learning
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