Exam 2 Short Answer - EXAM 2 REVIEW All Possible Questions...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
EXAM 2 REVIEW All Possible Questions on the Exam 1. Briefly identify the special features of competing in foreign markets. (p. 197 - 201) a. Cultures and lifestyles differ among countries b. Differences in market demographics and income levels c. Variations in manufacturing and distribution costs d. Fluctuating exchange rates e. Differences in host government economic and political demands i. Local content requirements, restrictions on exports, regulations on prices of imports, import tariffs or quotas, other regulations (ex. technical standards, product certification, withdrawal of funds, ownership) 2. Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely upon an export strategy to compete in foreign markets. (p. 199 - 200) a. Companies with manufacturing facilities in a particular country are most cost- competitive in exporting goods to world markets when the local currency is weak (or declines in value relative to other currencies); their competitiveness erodes when the local currency grow stronger relative to the currencies of the countries to which the locally made goods are being exported i. Exporters always gain in competitiveness when the currency of the country where goods are manufactured grows weaker ii. Exporters are disadvantaged when the currency of the country where goods are manufactured grows stronger 3. Discuss in some detail the difference between a multi-country strategy and a global strategy and give the pros and cons of each. (p. 201 - 202) a. Multi-Country Strategy – Varying the company’s strategic approach from country to country in accordance with local conditions and differing buyer tastes and preferences (entire supply chain in more than one country) i. Pros: 1. The company’s actions and business approaches are deliberately crafted to accommodate the differing tastes and expectations of buyers 2. Essential when… a. Significant country to country differences in customer preference & buying habits b. Significant cross-country differences in distribution channels and marketing methods c. Governments enact regulations requiring products meet specifications and standards a. Trade restrictions of host governments are diverse and complicated ii. Cons: 1
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
1. Winning in one country does not necessarily signal the ability to fare well in other countries! 2. Any competitive advantage a company secures in one country is largely confined to that country (spillover effect is minimal, if any) 3. Hinder transfer of a company’s competencies and resources across borders 4. Does not promote building a single unified competitive advantage – especially one based on low cost b. Global Strategy – A company employs the same basic competitive approach in all countries where it operates, sells much the same products everywhere, strives to build global brands, and coordinates its actions worldwide (economies of scale!) iii. Pros: 1. A company can more readily unify its operations and focus on establishing a brand image and reputation that is uniform from country to country 2.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern