Chapter 8: International Strategy

These flashcards cover key terms and concepts related to international strategies in business management.

International Strategy

A strategy through which a firm sells its goods and/or services outside its domestic market.

International Diversification Strategy

A strategy that involves expanding the production and/or sales of goods and/or services across the borders of global regions and countries.

Global Value Chains

Systems that enhance the ability to deliver products or services across international borders.

Multidomestic Strategy

An international strategy where strategic and operating decisions are decentralized to the business units in individual countries.

Global Strategy

An international strategy where the home office determines the strategies that business units use in each country or region.

Transnational Strategy

An international strategy that balances global efficiency and local responsiveness.

Exporting

An entry mode through which a firm sells products produced in its domestic market to international markets.

Licensing

An arrangement that allows a foreign company to manufacture and sell a firm's products in exchange for royalties.

Franchising

A form of licensing that allows a franchisee to sell a product or service under the franchisor's business name.

Strategic Alliances

Collaborations between firms to share resources and risks in order to enter one or more international markets.

Acquisitions

An entry mode through which a firm from one country buys a stake in or purchases an existing firm in another country.

New Wholly Owned Subsidiary

A greenfield venture where a firm establishes a new subsidiary in a foreign market.

Political Risks

Risks arising from disruptions due to political forces or events in home or host countries.

Economic Risks

Risks associated with fundamental weaknesses in a country's economy that can adversely affect international strategies.

Cultural Distance

Differences in shared norms and values across cultures which can impact business operations.

Desired Strategic Competitiveness Outcomes

Factors that contribute to the success of an international strategy, such as proper selection of countries, strategies, and modes of entry.

Enhanced Innovation

The process by which a firm continuously upgrades its competitive advantage through innovation, supported by international diversification.