07 BUS 444 Chap 7

Worldwide exploitation of the parent firms knowledge

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Unformatted text preview: international strategy is based on diffusion and adaptation of the parent company’s knowledge and expertise to foreign • The primary goal of the strategy is worldwide exploitation of the parent firm’s knowledge and capabilities. markets. 7-30 Strengths and Limitations of International strategies 7-31 Global Strategy • Competitive strategy is centralized and controlled largely by corporate office • Emphasizes economies of scale 7-32 Strengths and Limitations of Global Strategies 7-33 Multi‐domestic Strategy • Emphasis is differentiating products and services to adapt to local markets • Authority is more decentralized 7-34 Strengths and Limitations of Multi‐domestic Strategies 7-35 Transnational Strategy • Optimization of tradeoffs associated with efficiency, local adaptation, and learning • Firm’s assets and capabilities are dispersed according to the most beneficial location for a specific activity 7-36 Strengths and Limitations of Transnational Strategies 7-37 Entry Modes of International Expansion 7-38 Entry Modes of International Expansion • Exporting Producing goods in one country to sell to residents of another country. • Licensing company receives a fee in exchange for the right to use its intellectual property. 7-39 Entry Modes of International Expansion • Wholly owned subsidiary a business in which a multinational company owns 100 percent of the stock. 7-40 QUESTION Fees that a multinational receives from a foreign licensee in return for its use of intellectual property are usually called: A. Transfer prices B. Dividends C. Royalties D. Intra-corporate inflows 7-41 QUESTION Fees that a multinational receives from a foreign licensee in return for its use of intellectual property are usually called: A. Transfer prices B. Dividends C. Royalties D. Intra-corporate inflows 7-42 Assignments • Read Chapter 8 for tomorrow. • Next exam moved to Tuesday, 4 March. • Make a copy of the “eBay: Expanding into Asia” case study on pages C296-C307. You will have a case assignment on 5 March, which will be due on 11 March. 7-43...
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This note was uploaded on 03/05/2014 for the course BUS 444 taught by Professor Lynn during the Spring '11 term at Keuka.

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