GEB 4890 EXAM 2 FINAL PAPER 2026
COMPLETE RESPONSE SET GRADED A+
◉ Identify and explain major reasons why companies expand into
and compete in foreign markets. Answer: 1. To gain access to new
customers.
2. To achieve lower costs through economies of scale, experience,
and increased purchasing power.
3. To gain access to low-cost inputs of production.
4. To further exploit its core competencies.
5. To gain access to resources and capabilities located in foreign
markets.
◉ Differentiate between competing internationally and competing
globally. Answer: International strategy: competing in two or more
countries simultaneously.
Global strategy: a company employs the same basic competitive
approach in all countries where it operates, sells standardized
products globally, strives to build global brands, and coordinates its
actions worldwide with strong headquarters control.
◉ Describe the role that cross-country differences play in
determining how organizations should compete in foreign markets.
,Answer: Cultures and lifestyles, Market demographics, Market
conditions, Growth rate, Distribution systems, Need for
responsiveness, Locations advantages, Exchange rates, Host
government restrictions, Tariffs, & Trade policies
◉ Exporting Answer: Maintaining national production and exporting
goods to foreign markets.
A good way to test the international market (low risk) Deal with
shipping costs and tariffs.
◉ Licensing Answer: Allow foreign firms to produce and distribute
your product or use your technology.
Good for manufacturing organizations
◉ Franchising Answer: Similar to licensing
More suited to services and retailers
Longer term and broader in nature
◉ Acquisition / Merger Answer: Acquire or merge with company
competing in foreign market
Give very quick entry to market
Deal with cultural and integrations issues (viable)
, ◉ Greenfield Venture / Internal Development Answer: Start up a
new business unit and use it to enter in to foreign market
Starting new unit in existing integration. Takes a long time before
earning profits.
◉ Strategic Alliances & Joint Ventures Answer: Combine resources
with foreign partner(s)
Share risks, costs, and profits
Fail over time
◉ Multi-country Strategy Answer: Think-local, act-local
Tailor strategy to each country
◉ Global Strategy Answer: Think-global, act-global
Pursue same basic strategy worldwide
◉ Transnational Strategy Answer: Think-global, act local
Combination global-local strategy
◉ Describe how a firm can achieve a competitive advantage by
competing in international markets. Answer: 1. Locating various
value chain activities among nations in a manner that lowers costs
or achieves greater product differentiation.
COMPLETE RESPONSE SET GRADED A+
◉ Identify and explain major reasons why companies expand into
and compete in foreign markets. Answer: 1. To gain access to new
customers.
2. To achieve lower costs through economies of scale, experience,
and increased purchasing power.
3. To gain access to low-cost inputs of production.
4. To further exploit its core competencies.
5. To gain access to resources and capabilities located in foreign
markets.
◉ Differentiate between competing internationally and competing
globally. Answer: International strategy: competing in two or more
countries simultaneously.
Global strategy: a company employs the same basic competitive
approach in all countries where it operates, sells standardized
products globally, strives to build global brands, and coordinates its
actions worldwide with strong headquarters control.
◉ Describe the role that cross-country differences play in
determining how organizations should compete in foreign markets.
,Answer: Cultures and lifestyles, Market demographics, Market
conditions, Growth rate, Distribution systems, Need for
responsiveness, Locations advantages, Exchange rates, Host
government restrictions, Tariffs, & Trade policies
◉ Exporting Answer: Maintaining national production and exporting
goods to foreign markets.
A good way to test the international market (low risk) Deal with
shipping costs and tariffs.
◉ Licensing Answer: Allow foreign firms to produce and distribute
your product or use your technology.
Good for manufacturing organizations
◉ Franchising Answer: Similar to licensing
More suited to services and retailers
Longer term and broader in nature
◉ Acquisition / Merger Answer: Acquire or merge with company
competing in foreign market
Give very quick entry to market
Deal with cultural and integrations issues (viable)
, ◉ Greenfield Venture / Internal Development Answer: Start up a
new business unit and use it to enter in to foreign market
Starting new unit in existing integration. Takes a long time before
earning profits.
◉ Strategic Alliances & Joint Ventures Answer: Combine resources
with foreign partner(s)
Share risks, costs, and profits
Fail over time
◉ Multi-country Strategy Answer: Think-local, act-local
Tailor strategy to each country
◉ Global Strategy Answer: Think-global, act-global
Pursue same basic strategy worldwide
◉ Transnational Strategy Answer: Think-global, act local
Combination global-local strategy
◉ Describe how a firm can achieve a competitive advantage by
competing in international markets. Answer: 1. Locating various
value chain activities among nations in a manner that lowers costs
or achieves greater product differentiation.
