Chapter 9: Competing in International Markets

These flashcards cover key concepts related to Chapter 9 on competing in international markets, focusing on strategies, frameworks, benefits, risks, and significant case studies.

What are the main benefits of competing in international markets?

Access to new customers, lowering costs, and diversification of business risk.

What is the CAGE framework used for?

To evaluate the cultural, administrative, geographic, and economic distances between countries for making international business decisions.

What are the four types of international strategies?

International, Multi-domestic, Global, and Transnational.

What does the diamond model explain?

It explains the competitive advantages some firms have based on their home country's conditions, including demand conditions, factor conditions, related and supporting industries, and firm strategy, structure, and rivalry.

What are the available methods for entering international markets?

Exporting, Licensing, Franchising, Joint Ventures, Acquisitions, and Greenfield investments.

What is the difference between offshoring and reshoring?

Offshoring involves relocating business operations to another country, while reshoring refers to bringing those operations back to the home country.

How do cultural differences impact international business?

Cultural differences can cause misunderstandings and miscommunication, affecting marketing strategies and customer relations.

What is an example of political risk when competing internationally?

Government upheaval or interference that can harm operations, such as Venezuela's nationalization of foreign companies.

What is a multi-domestic strategy?

A strategy that focuses on responsiveness to local requirements in each market, rather than cost efficiency.

What factors influence economic risk in international business?

Economic conditions, property rights protections, and currency exchange rates.

How can cultural misunderstanding affect marketing campaigns?

Cultural blunders can lead to significant failures in advertising, as seen with ads not tailored to local customs or languages.

What differentiates a joint venture from a strategic alliance?

A joint venture creates a new entity where partners share control and profits; a strategic alliance does not create a new entity and may involve cooperative efforts.

Why is product adaptation important in international markets?

Adapting products to match local tastes and preferences increases the chances of success in different cultural contexts.