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Strategies on International Economics
Ethan Grow American Public University BUSN604: Fundamentals of Business Analysis
Xiaodong Wu
09/10/2023
2
Strategies on International Economics
There are two key concerns or categories of metrics that assist a company’s upper-level management in deciding business strategy; these concerns are global integration and local responsiveness. Global integration is how well a company’s current business strategies, manufacturing methods and product generation can be applied in foreign markets. Local responsiveness is a measure of how much change must be implemented to make their products and methods marketable and otherwise acceptable in those foreign markets. A further breakdown
of these two categories gives us four different business strategies for global market applications: export, standardization, multidomestic, and transnational (Bruton & Bruton, 2023). Exactly how each strategy will apply to different countries’ markets can also be examined by taking cultural differences into account, and moving forward with business that is mutually beneficial, with clear communication and hierarchal needs met. Standardization Strategy
Standardization is the method of applying business practices on a global scale with as little customization as possible, or alterations. Some examples are the iPhone, or computers/server machines made by Dell, HP, etc. because information technology requires little customization beyond human interface language (Bruton & Bruton, 2023), IT companies
can rely on standardization strategies to supply their products worldwide without much concern for altering their product in each country. Culture must be considered when making decisions on standardization because any subtle differences in culture that have to do with the product being sold can change how that company should market, produce, and distribute their products. To continue the IT company example, culture must be considered when
3
programming phones with certain languages and complying with internet access policies and laws. Multidomestic Strategy
A multidomestic strategy defines how products are customized in accordance with conditions that apply to specific countries (Bruton & Bruton, 2023). This strategy considers culture by providing a hierarchical management structure and placing location-specific control
of facilities and products to local management that has a better understanding of local culture, practices, and customs. The more acclimated to a country’s customs a company can be the smoother and more accepted their products and business practices will be (Smith, 2023). Being able to pick and choose what cultural differences apply to business specifically is incredibly important. Transnational Strategy
Transnational strategies combine standardization with multidomestic strategies because it meets in the middle of the least amount of customization needed and the least amount of local cultural requirements. An example given is car companies that produce and distribute international products, but produce a base model that can then be customized specifically to local laws, policies and preferences (Bruton & Bruton, 2023). Culturally this is important because each country will see differences in vehicles sold in different parts of the world, which creates an appreciation for the brand. Export Strategy
Export strategy is the lowest in consideration of global integration and local responsiveness. The company makes a conscious choice to only cater to their local market without any customization for global distribution (Bruton & Bruton, 2023). This more often
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Related Questions
please use Nestle as the caribbean company and Canada as the international market
You are hired as a consultant by Tokyo Inc. to prepare a report based on the undermentioned criteria.You will choose a known Caribbean Company in the agro-processing sector and its product (s) withinformation available on the internet, that does not currently operate outside the Caribbean CARICOMregion. You will conduct a comprehensive study of the international business environment, that is, thegeography, culture, government, history, economics, and politics of a new country, outside of the region,from which you believe the company and its product (s) could operate profitably. Propose a strategy forinternationalization. Looking particularly at entry strategies that could be utilized as discussed in the course.You will need to keep in mind the domestic realities of the company and its product (s) by conducting asituation analysis to start. You are also required to suggest an international strategy after…
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Tesco decided to bring together a team of Asian managers who would visit and examine Tesco’s operations in the UK. As Tesco in-siders, they would be familiar with the company’s mission, values, processes, and procedures and thus would be able to feel at home in the store context; as outsiders in the UK, they could see things differently from the British managers, thereby bringing valuable home-country insights and sharing best practices that had evolved in their local markets. The project, “The Essence of Tesco,” had a two-pronged strategic purpose: (1) to determine what was and wasn’t working by conducting a health-check of Tesco UK’s current corporate state; and (2) to compare and contrast that state with what had evolved in Tesco’s Asian subsidiaries so as to learn from and leverage them globally. Tesco chose nine managers from six of its Asian subsidiaries: two each from Thailand, South Korea, and China—its largest Asian markets—and one each from…
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Understanding the environments of international business moves managers to mind the world’s static as well as changing dimensions. For example, political geography is concerned with the study of both the spatially uneven outcomes of political processes and the ways in which political processes are themselves affected by spatial structures.
Likewise, economic geography is the study of the location, distribution, and spatial organization of economic activities across the earth.
More precisely, Economic geography applied a variety of approaches to many different subject matters, including the location of industries, economies of agglomeration (also known as "linkages"), transportation, international trade, development, real estate, gentrification, ethnic economies, gendered economies, core-periphery theory, the economics of urban form, the relationship between the environment and the economy, and, yes, as you would expect, the matter of globalization.
Both good and bad, we see intriguing…
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“…Nature of the market opportunity, firm’s resources and managerial philosophy affect internationalisation in the business strategy approach, and market selection will result from an evaluation of factors like market attractiveness, psychic distance, accessibility and informal barriers…” Source: (Root, 1987; Turnbull and Ellwood, 1986).
Referring to the above statement, critically analyse how international marketers screen emerging markets.
Reference should be made to both:
(a) General and(b) Specific.
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Products must be adapted to accommodate national differences arising from customer preferences and each market’s economic conditions, climate, culture, and language. Think about the following products: packaged flour, swimsuits, textbooks, and automobiles. Describe how a firm would need to adapt the marketing for each of these products to suit conditions in China, Germany, and Saudi Arabia.
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7.
List disadvantages for a domestic economy and the citizens of home country that come as a result of Firm's decision to go global. How could the Firm mitigate these disadvantages?
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Critkal Thinking Some countries have been critical ofthe export of American culture via movies, television,music and many American consumer goods by U.S.businesses. What about American culture might be objectionable? Can you think of some products that U.S.marketers export that can be objectionable to someforeign markets? What is the solution to the problem?
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Differences in customs, governmental regulations, and the cost of living are examples of
(A) Global information technology
(B) Transnational strategy
(C) Cultural, political and geo-economics challenges
(D) Global business drivers
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Explain how the following international business theories can be used by pepsi company when making the decision to go international?1. David Ricardo’s theory of comparative advantage2. Raymond Vernon’s product life cycle3. John Dunning’s eclectic theory4. Porters Diamond5. Heckscher-Ohlin Model
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1
Which of the following is NOT one of the factors included in the international environment?
Select one:
a.
global financial system
b.
global demographic pattern
c.
global information system
d.
global study trends
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126.
Differences in customs, governmental regulations, and the cost of living are examples of
a.
transnational strategy
b.
global business drivers
c.
global information technology
d.
cultural, political and geoeconomic challenges
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Regardless of strategy, most international businesses want to increase their market share, revenues, and profits. They often accomplish these goals by entering new markets or launching new goods into markets where they already have a presence. The ability of a firm to accomplish this successfully is dependent on its developing a thorough understanding of a certain geographical or product market. Firms must typically take three stages to effectively expand their market share, revenue, and profits: (1) evaluate alternative markets, (2) evaluate the costs, benefits, and risks of entering each, and (3) select those with the greatest potential for entry or expansion. Discuss FOUR (4) modes of entry that digital firms may employ to enter the ecommerce China market. Support a case with an example of a successful company doing it.
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conduct a comprehensive study of the international businessenvironment of the United States of America, that is, the geography, history, politics, government, economics, and culture.State reasons why you think a locally Home-made garlic sauce will be sold profitably. Propose a strategy for internationalization. Lookingparticularly at entry strategies like exporting, licensing agreements and franchising, partnering and strategic alliances,acquisitions and establishing new, wholly owned subsidaries that could be utilized.1. Hofstede’s dimensions with scores must be included as part of theanalysis.
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International companies use various strategies to gain a competitive advantage in the marketplace
Describe the main characteristics of the following strategies and provide examples of corporations that have implemented them.
Global strategy
Transnational strategy
International strategy
Localization strategy
Cite 2 quality sources
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the various international market entry strategies and various export entry modes.
a)Identify and discuss the market entry strategies.
b)Discuss the various forms of export entry modes.
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The motto of transnational strategies is
Select the correct option from the list below to fill the gap at the end of the statement above.
Select one:
a. think local act local
b.
think global - act global
C. think global - act local
d. think local act global
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Speaking of the dove company (soaps), it has these external factors, explaining a strategy to achieve each of these factors:
Increase in international trade agreements:
Increased business automation:
Increased emphasis on sustainable business strategies:
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From the following, please identify the 2 statements that are true as well as the 2 statements that are false.
A) Critics of globalization claim that increasing cross-national integration fortifies countries' sovereignty.
B) International operations may increase operating risk by smoothing sales and profits.
C) Foreign sources may give companies additional operating knowledge
D) Although foreign external environmental differences are problematic, they must be weighed against domestic opportunities and risks.
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There are numerous techniques that multinational companies can use to analyze or forecast International Political Risk.
Required: From the choices below, choose TWO (2) specific international political risk analysis or forecasting techniques.
O Joint Venture
O Political Risk Consultant
O Code of Conduct
O In-house Political Risk Analysis Staff
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ou are hired as a consultant by Tokyo Inc. to prepare a report based on the undermentioned criteria.You will choose a known Caribbean Company in the agro-processing sector and its product (s) withinformation available on the internet, that does not currently operate outside the Caribbean CARICOMregion. You will conduct a comprehensive study of the international business environment, that is, thegeography, culture, government, history, economics, and politics of a new country, outside of the region,from which you believe the company and its product (s) could operate profitably. Propose a strategy forinternationalization. Looking particularly at entry strategies that could be utilized as discussed in the course.You will need to keep in mind the domestic realities of the company and its product (s) by conducting asituation analysis to start. You are also required to suggest an international strategy after an analysis of allstrategies discussed in the course.
Use "My Crown of Curls" as…
arrow_forward
ou are hired as a consultant by Tokyo Inc. to prepare a report based on the undermentioned criteria.You will choose a known Caribbean Company in the agro-processing sector and its product (s) withinformation available on the internet, that does not currently operate outside the Caribbean CARICOMregion. You will conduct a comprehensive study of the international business environment, that is, thegeography, culture, government, history, economics, and politics of a new country, outside of the region,from which you believe the company and its product (s) could operate profitably. Propose a strategy forinternationalization. Looking particularly at entry strategies that could be utilized as discussed in the course.You will need to keep in mind the domestic realities of the company and its product (s) by conducting asituation analysis to start. You are also required to suggest an international strategy after an analysis of allstrategies discussed in the course.
Use "Caribbean Dream" as the…
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As international businesses look to emerging markets for growth opportunities and access to resources, they will evaluate the business environments of the countries under consideration. Argentina is the largest country in South America, and its terrain includes mountains, lakes, glaciers, and grasslands. It is resource rich—producing soybeans, wheat, wine, and beef. It has more arable land per person than all but five nations in the world. Argentina has the world’s third largest shale-oil and gas fields. With a population of more than 45 million and rich natural resources, Argentina might seem to be a desirable market for international businesses. Despite this, Argentina is known as a rich country made poor. Consider these points of interest about Argentina.
In 1913, Argentina was the 10th wealthiest country in the world, ahead of Norway, France, Germany, and Japan. Today, it is in 85th place, behind Russia and China, with a per-capita income of $10,000.
Demographically, Argentina…
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As international businesses look to emerging markets for growth opportunities and access to resources, they will evaluate the business environments of the countries under consideration. Argentina is the largest country in South America, and its terrain includes mountains, lakes, glaciers, and grasslands. It is resource rich—producing soybeans, wheat, wine, and beef. It has more arable land per person than all but five nations in the world. Argentina has the world’s third largest shale-oil and gas fields. With a population of more than 45 million and rich natural resources, Argentina might seem to be a desirable market for international businesses. Despite this, Argentina is known as a rich country made poor. Consider these points of interest about Argentina.
In 1913, Argentina was the 10th wealthiest country in the world, ahead of Norway, France, Germany, and Japan. Today, it is in 85th place, behind Russia and China, with a per-capita income of $10,000.
Demographically, Argentina…
arrow_forward
From the statements below, select the one that is not an example of a factor in the socio-cultural environment.
A)
Companies are more likely to set up foreign operations in countries with stable political and economic systems.
B)
Many people in the Middle East are unwilling to work in food service operations.
C)
McDonald's has added salads and other low-fat foods to its menu.
D)
Prepackaged chili is more popular in southwestern U.S. states than in the U.S. northeast.
E)
Consumers in China perceive bicycles primarily as a mode of transportation, while consumers in Canada perceive bicycles as recreational items.
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Please answer question throughly
Please answer the question below with thorough information using 2 factual examples each
1.Provide at least two (2) examples/case studies of international modes of entry utilized by multinational corporations in Thailand, Malaysia and South Korea that have succeeded or failed. The name of the multinational must be clearly stated in each example. Be sure to state the mode of entry utilized in each example in each country. Why do you think they would have succeeded or failed in each example included?
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Discuss all the international business strategies.. Analyze the international strategy based on the international strategies as discussed in the course for the company selected in two of the countries that they operate in with the use of information from the company operations to support your discussion. Suggest an international strategy for Microsoft and one of its products in a selected country based ona discussion of all strategies discussed in the course (note, the suggestion must be feasiblebased on the country analysis and product).• Inclusion of scholarly peer reviewed journal literature
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Which one of the following is NOT a reason a company decides to enter foreign markets?
A) To spread business risk across a wider geographic market base
B) To build the profit sanctuaries necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market
C) To capitalize on company competencies and capabilities
D) To gain access to more buyers for the company's products/servicesE) To achieve lower costs and enhance the firm's competitiveness
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this is international Business class
Q: What are the different global competitive strategies that a company can choose to compete in an international/foreign market? How to decide which one to adopt?
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