{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MGO 403 Chapter 7 - J ian M in Li MGO 403 Professor Sima...

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

View Full Document Right Arrow Icon
Jian Min Li October 13, 2010 MGO 403 Professor Sima Fortsch Chapter 7 4. There are four basic strategies – international, global, multidomestic, and transnational. What are the advantages and disadvantages associated with each? An international strategy is based on diffusion and adaptation of the parent company’s knowledge and expertise to foreign markets. The advantage of international expansion is the companies can sell more products to more market. They can take advantage of arbitrage and extending the product life cycle. They can also lower the manufacturing cost. However, the companies will face and have to handle some risks while they are using international strategy, such as political and economical risks, currency risks, and management risks. An global strategy based on firms’ centralization and control by the corporate office, with the primary emphasis on controlling costs, and used in industries where the pressure for local adaptation is low and the pressure for lowering costs is high. A global strategy has a few advantages, which are innovation can be transferred more easily to other locations, and it can enable a firm to create a standard level of quality throughout the world. However, some risks
Image of page 1

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

View Full Document Right Arrow Icon
associated with a global strategy, which are “double-edged sword” and isolating the activity from the targeted markets.
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