MHR 423 Exam 2| QUESTIONS WITH 100% CORRECT ANSWERS| LATEST UPDATE
100% VERIFIED
Global Strategy Strengths Lower costs from learning across sites, economies of scale, more
control of reputation, marketing and quality
Global Strategy Weaknesses Higher coordination costs, less customization
Multi-Domestic Strategy Strengths Lower transportation costs, local responsiveness, no one
unit is critical
Multi-Domestic Strategy Weaknesses More locations vulnerable to war, disasters, etc., less
economy of scale
Factors in Choosing International Strategy Cost, market, and government
International Modes of Entry Exporting, licensing, strategic alliances, acquisitions, and
wholly-owned subsidiaries
Exporting Advantages Minimal risk, very fast, maximize scale, low investment
Exporting Disadvantages Trade barriers, transportation costs, limited access to local info,
viewed as outsider
Licensing Advantages Minimal risk and investment, very fast, circumvent trade barriers, high
returns, can be viewed as insider
, Licensing Disadvantages Loss of control, quality can suffer, potential for knowledge
spillovers, licensee could become competitor
International Joint Venture Advantages Overcome ownership restrictions and cultural
distance, combined resources, viewed as insider, reduces investment vs. sole ownership
International Joint Venture Disadvantages Difficulties in management, dilution of control,
partner may act in self-interest, partner could become competitor
International Acquisition Advantages Rapid Access, overcome cultural and trade barriers,
minimizes knowledge transfer
International Acquisition Disadvantages Risky and expensive, integration even more difficult
due to cross-cultural issues
International Subsidiary Advantages Most potential for above-average returns, minimize
knowledge transfer, maximize control
International Subsidiary Disadvantages Most risky and expensive, slow entry
Jollibee 3 Expansion Phases Plant the flag (1st mover), target expats, local responsiveness
Plant the Flag Pros Monopoly, access good locations, set the standard
Plant the Flag Cons Pioneer costs, have to create demand, higher risk
100% VERIFIED
Global Strategy Strengths Lower costs from learning across sites, economies of scale, more
control of reputation, marketing and quality
Global Strategy Weaknesses Higher coordination costs, less customization
Multi-Domestic Strategy Strengths Lower transportation costs, local responsiveness, no one
unit is critical
Multi-Domestic Strategy Weaknesses More locations vulnerable to war, disasters, etc., less
economy of scale
Factors in Choosing International Strategy Cost, market, and government
International Modes of Entry Exporting, licensing, strategic alliances, acquisitions, and
wholly-owned subsidiaries
Exporting Advantages Minimal risk, very fast, maximize scale, low investment
Exporting Disadvantages Trade barriers, transportation costs, limited access to local info,
viewed as outsider
Licensing Advantages Minimal risk and investment, very fast, circumvent trade barriers, high
returns, can be viewed as insider
, Licensing Disadvantages Loss of control, quality can suffer, potential for knowledge
spillovers, licensee could become competitor
International Joint Venture Advantages Overcome ownership restrictions and cultural
distance, combined resources, viewed as insider, reduces investment vs. sole ownership
International Joint Venture Disadvantages Difficulties in management, dilution of control,
partner may act in self-interest, partner could become competitor
International Acquisition Advantages Rapid Access, overcome cultural and trade barriers,
minimizes knowledge transfer
International Acquisition Disadvantages Risky and expensive, integration even more difficult
due to cross-cultural issues
International Subsidiary Advantages Most potential for above-average returns, minimize
knowledge transfer, maximize control
International Subsidiary Disadvantages Most risky and expensive, slow entry
Jollibee 3 Expansion Phases Plant the flag (1st mover), target expats, local responsiveness
Plant the Flag Pros Monopoly, access good locations, set the standard
Plant the Flag Cons Pioneer costs, have to create demand, higher risk
