Chapter 10 - Global Strategy: Competing around the world

A decision framework based on the relative distance between home and a foreigh target country along four dimensions: cultural distance, administrative and political distance, geographic distance, and economic distance

Cultural disparity between an internationally expanding firm's home country and its targeted host country

An assumption that geographic location alone should not lead to firm-level competitive advantage because firms are now, more than ever, able to source inputs gobally

A firm's investments in value chain activities abroad

Strategy attempting to reap significant economies of scale and location economies by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost

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

The process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reduction in transportation costs

Assumption that consumer needs and preferences throughout the world are converging and thus becoming increasingly homogenous

Strategy framework that juxtaposes the pressures of MNE faces for cost reductions and local responsiveness to derive four different strategies to gain and sustain competitive advantage when competing globally: international strategy, global standardization strategy, and transnational strategy

Strategy that involves leveraging home-based core competencies by selling the same products or services in bothe domestic and foreign markets; advantageous when the MNE faces low pressure for both local responsiveness and cost reductions

Additional costs of doing business in an unfamiliar cultural and economic environment, and of coordinating across geographic distances

The need to tailor product and service offerings to fit local consumer preferences and host-country requirements; generally entail high costs

Benefits from locating value chain activities in the world's optimal geographies for a specific activity, wherever that may be

Strategy pursued by MNEs that attempts to maximize local responsiveness, with the intent that local consumers will perceive them to be domestic companies; the strategy arises out of the combination of high pressure for local responsiveness and low pressure for cost

A company that deploys resources and capabilities in the procurement, production, and distribution of good and services in at least two countries

The collective mental and emotional "programming of the mind" that differentiates human groups

Strategy that attempts to combine the benefits of localization strategy (high local responsiveness) with those of a global standardization strategy (lowest cost position attainable)

How globalized do MNE's typically tend to be

Product, service and capital markets are more globalized than labor markets. The level of everyday activities is roughly 10-25% integrated and thus

Globalization is made possible by what 4 factors

What are some reasons you would want to go global

What are some disadvantages of expanding internationally

What four dimensions does the CAGE Distance Framework talk about

What four dimension of culture emerged from Hofstede's national culture research

Ways of entering a foreign market that would yield low investments but also low level of control

Ways of entering a foreign market that would yield high investments and high level of control

Porter's diamond of national competitive advantage

Most of the costs and risk invovled in expanding beyond the domestic market are created by

Even in a more globalized world, the basis for a competitive advantage is often