Going Global
This term describes the disadvantages foreign firms face due to unfamiliarity with local institutions and norms.
What is the liability of being a foreigner?
This strategy replicates a home-market advantage across borders.
What is deployment?
This approach involves hiring external firms abroad to perform activities.
What is offshore outsourcing?
The three types of location characteristics are natural endowments, institutional environments, and these.
What are clusters?
This clock focuses on whether a location has matured enough to support expansion.
What is the location clock?
This paradox explains why firms successful at home often fail abroad.
What is the paradox of being consistent?
P&G’s SK-II rollout is an example of this strategy, which leverages local differences.
What is development?
Splitting a value chain across locations can weaken these three types of links.
What are internal, external, and dynamic links?
Zara invested heavily in this capability to coordinate across global stores.
What is IT / real-time demand tracking?
The “incentives clock” refers to changes in these government offerings.
What are incentives / subsidies / tax breaks?
Walmart exited this European country in 2006 after cultural clashes and strong competition.
What is Germany?
IKEA’s global expansion is a classic case of this strategy.
What is deployment?
Apple reshoring chip design in-house is an example of this practice.
What is insourcing (reshoring)?
Intel’s expansion in Vietnam succeeded largely due to this kind of government incentive.
What are tax breaks / utility subsidies?
A firm’s readiness for expansion depends on this clock.
What is the firm clock?