Strategy of International Business Exam Questions and Answers

Transnational Strategy Issues to Consider 1 - ANSWER-*ADAPTING TO LOCAL MARKET DIFFERENCES* -Distinction b/w attributes were customers value adaptation, where they are neutral or averse. -For attributes where adaptation adds value, how much is a customer willing to pay. *EXPLOITING ECONOMIES OF SCALE* -Distinction b/w activities that are scale sensitive and those that are not. -Benefits from economies of scale vs increases in cost -effective and efficient coordinating mechanism Transnational Strategy Issues to Consider 2 - ANSWER-*TAPPING OPTIMAL LOCATION FOR ACTIVITIES* -can it be easily neutralized by competitors -organization and resource flexibility to shift locations over time -How frictionless is the degree of our coordination across various locations? *MAXIMIZING KNOWLEDGE TRANSFERS* -ability to routinely & systematically uncover opportunities for knowledge transfers -Enthusiasm of subsidiaries about knowledge transfers sharing with peers -Effective mechanisms for knowledge transfers Mutinational - ANSWER-building flexibility to respond to national differences through strong resourceful, & entrepreneurial national operations Global Standardalization - ANSWER-Building cost advantages through centralized global scale operations Transnational - ANSWER-Developing global efficiency , flexibility, worldwide learning capability simultaneously Transnational Strategy - ANSWER--Greater emphasis on differentiated products than in pure global industries -Greater demand for global efficiency & lower costs than in pure multinational industries -Greater sensitivity to governments demands -Units coordinate activities with HQ and with one another -Units may face to different circumstances only they face Forces against Global Strategy - ANSWER--Consumers demanding something different -Government demands -Risks (political, economical, resource) -New manufacturing technology -Organization limitations