WPC 480 - Chapter 10 Questions With
Complete Solutions
A firm's investments in value chain activities abroad. Foreign direct investment (FDI)
Part of a firm's corporate strategy to gain and sustain a competitive advantage when competing
against other foreign and domestic companies around the world. Global strategy
1. Gain access to a larger market
2. Gain access to low-cost input factors
3. Develop new competencies Advantages of going global
Benefits from locating value chain activities in the world's optimal geographies for a specific
activity wherever that may be. Location economies
Additional costs of doing business in an unfamiliar cultural and economic environment, and
coordinating across geographic distances. Liability of foreignness
Complete Solutions
A firm's investments in value chain activities abroad. Foreign direct investment (FDI)
Part of a firm's corporate strategy to gain and sustain a competitive advantage when competing
against other foreign and domestic companies around the world. Global strategy
1. Gain access to a larger market
2. Gain access to low-cost input factors
3. Develop new competencies Advantages of going global
Benefits from locating value chain activities in the world's optimal geographies for a specific
activity wherever that may be. Location economies
Additional costs of doing business in an unfamiliar cultural and economic environment, and
coordinating across geographic distances. Liability of foreignness
