International Strategy: Creating Value in Global Markets

These flashcards cover important terms and concepts related to international strategy and global markets as discussed in Chapter 7.

International Expansion

A viable diversification strategy that allows firms to increase revenue and profitability by entering global markets.

National Advantage

Factors that explain why an industry in a specific country is more or less successful compared to the same industry in another country.

Cost Reduction

A strategy that emphasizes minimizing expenses, often associated with a global strategy.

Adaptation to Local Markets

The strategy of tailoring products and services to fit the needs and preferences of local consumers.

Multinational Firm

A company that operates in multiple countries and may adapt its products and strategies accordingly.

Economic Risk

Risks associated with business operations that arise from factors such as piracy, counterfeiting, and currency fluctuations.

Factor Endowments

The resources that a country possesses, including land, capital, and labor, which can impact its competitiveness.

Demand Conditions

The demands that consumers place on an industry, driving firms to innovate and improve.

Transnational Strategy

A strategy that seeks to achieve global efficiency while also adapting to local market conditions.

Entry Strategies

The different ways a company can enter a foreign market, including exporting, licensing, joint ventures, and wholly owned subsidiaries.

Globalization

The process of increasing economic and cultural interconnectedness between countries.

Political Risk

The risk of loss when a country experiences instability, which can affect business operations.

Offshoring

The relocation of business operations to a different country to take advantage of lower costs.

Multidomestic Strategy

A strategy that emphasizes local adaptation by tailoring products and services to local markets.

Licensing

An entry strategy that allows a firm to allow another entity to produce and sell its products in exchange for a fee or royalty.

Wholly Owned Subsidiary

A fully owned company by a parent corporation, which offers the greatest amount of control but also comes with the highest financial risk.