Advantages/Disadvantages
This term describes 'determining how to do business outside the borders of a firm's home country.'
International Strategy
Page 223
Andy
What does CAGE Framework stand for?
Cultural, Administrative, Geographic, and Economic
Page 244
Dan
4 Types of International Trading Strategies
international, multidomestic, global, and transnational
Page 247
Vance
4 Drivers of Success / Failure
Demand conditions; factor conditions; related and supporting industries; and strategy, structure, and rivalry among its domestic competitors.
Section 9.5
Lindsey
This term means 'involving "renting" a firms brand name and business process to local entrepreneurs.
Franchising
Page 249
Cameron
A word/words meaning 'relocating a business activity to another country'.
Offshoring
Page 225
Andy
What is the CAGE Framework used for?
Understanding patterns of trade, capital, information, and people flows
Section 9.3
Dan
This type of international strategy sacrifices local requirements to offer lower costs and better efficiency consistently.
Global Strategy
Section 9.4
Vance
In terms of demand conditions, how exactly a firm benefits
When domestic customers have high expectations
Page 252
Lindsey
KFC created what with 3 local Chinese organizations to help open its first restaurant in China.
Joint Venture
Page 254
Cameron
The textbook explains these 3 potential advantages of moving into an international market.
1. Access to new customers
2. Lowering costs
3. Diversification of risk
Page 224
Andy
In case 9.5, Chipotle ultimately decided this country was a better option (less distance) for international diversification.
Canada. It's closer, with a similar economy, more similar culture, and legal system.
Page 245
Dan
This type of international strategy is often seen in large fast-food chains
Transnational Strategy
Section 9.4
Vance
The factor conditions listed in the textbook
Land, labor, capital, and entrepreneurial ability
Page 253
Lindsey
One of the six basic options that has LOW investment and risk and LOW ownership, control, and profit potential.
Exporting
Page 250 (Figure 9.15)
Cameron
The valuable tool that can help assess and give insight to whether a firm should enter an international market or not
PESTEL analysis
Page 237
Andy
The dimension that determines the distance between home and target country based on legal and political systems
Administrative distance
Page 244
Dan
This type of international strategy that does not focus on cost or efficiency
Multi-Domestic (focus is on responsiveness to local requirements not cost or efficiency)
Section 9.4
Vance
The concept of firm strategy, structure, and rivalry
How challenging it is to survive domestic competition
Page 256
Lindsey
The textbook explains these 6 basic options available when firms enter a new country.
(1) Exporting, (2) Licensing, (3) Franchising, (4) Creating a Joint Venture, (5) Acquisition/Creating a Wholly Owned Subsidiary, (6) Greenfield/Wholly Owned Subsidiary
Page 249
Cameron
These two types of international strategies are considered to be complete opposites of one another
Global and multi-domestic
Section 9.4
Vance
Michel de Montaigne
Page 249
Cameron