IBT (PREFINAL)

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Entering a market means understanding the local consumers and what they look for when making a purchase decision. In some markets, price is an important issue.

The next part of due diligence is to understand the regional differences within the country and to not view the country as a monolith.

_________ involves analyzing foreign markets for their potential _, ____, , and _ needs and practices to aid the company in deciding whether to invest in entering that market.

________ is the degree to which the company’s existing practices, resources and capabilities fit the new market.

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Related to _ _, another factor for firms to consider when evaluating which country to enter is that of “______”

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In some cases, the decision to enter a new market will depend on the specific circumstances of the industry in which the company operates. For example, companies that help build infrastructure need to enter countries where the government or large companies have a lot of capital, because infrastructure projects are so expensive.

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Companies embark on an expansion strategy for one or more of the following reasons: (1) ___________________ , (2) _, and (3)

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____________ is an important and widely used tool that helps show the big picture of a firm’s external environment, particularly as related to foreign markets.

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PESTEL is an acronym for the ______, _, ___, _, _, and _______ contexts in which a firm operates.

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MARKETS

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There are three steps in the PESTEL analysis. First, ________________. Next, . Finally, _.

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PESTEL analysis provides insight into the status of key market _________, both in terms of their present state and future trends

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COSTS

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GOVERNMENTS

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COMPETITION

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FACTORS FAVORING INDUSTRY GLOBALIZATION

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___________ involves the sale of products or services in one country that are sourced in another country. In many ways, importing is a stealth form of internationalization.

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_________________ occurs when a company contracts with a third party to do some work on its behalf.

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___________ occurs when you take a function out of your country of residence to be performed in another country, generally at a lower cost. I

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__________________, or outsourcing work to a nondomestic third party, has become very visible in business and corporate strategy in recent years.

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A PESTEL analysis examines a target market’s ____, _, _, _, , and _ dimensions in terms of both its current state and possible trends

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The five most common modes of international market entry are _____, _, __, _, and __________________.

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What are some of the common motivators for companies embarking on international expansion?

•To improve the cost-effectiveness of their operations • To expand into new markets for new customers • To follow global customers Signup and view all the answers

What are some ways in which a company can learn about the needs of local buyers in a new international market?

The best way for a company to learn the needs of a new foreign market is to deploy people to immerse themselves in that market. Signup and view all the answers

Why is international market due diligence important?

<ol> <li>International market due diligence is important for risk mitigation, cultural understanding, strategic market entry, financial assessment, and effective supply chain management, enhancing businesses' decision-making and success in international markets.</li> <li>International market due diligence is important for mitigating risks, understanding market dynamics, complying with regulations, and making informed decisions when expanding into new markets.</li> </ol> Signup and view all the answers

Discuss the meaning of “corporate fit” in relation to international market expansion.

Corporate fit is the degree to which the company’s existing practices, resources and capabilities fit the new market Signup and view all the answers

What are the components of PESTEL analysis?

The components of PESTEL analysis are political, economic, sociocultural, technological, environmental, and legal contexts in which a firm operates. Signup and view all the answers

Name two common mistakes firms make when expanding internationally.

Common mistakes that firms make when entering a new market include (1) not doing thorough research prior to entry, (2) not understanding the competition, and (3) not offering a truly targeted value proposition for buyers in the new market. Signup and view all the answers

What are the four dimensions of pressures favoring globalization?

The four dimensions of pressures favoring globalization are markets, costs, governments, and competition Signup and view all the answers

Why might importing be considered a stealth form of internationalization or an internationalization entry mode?

Importing is a stealth form of international entry, because the factors that favor globalization can also lead to a higher level of imports, and inputs can be sourced from anywhere they have either the lowest cost, highest quality, or some combination of these characteristics. Signup and view all the answers

What is the difference between outsourcing and offshoring?

Outsourcing involves contracting with a third party to perform work on behalf of a company, while offshoring involves outsourcing a function from one's home country to another at a lower cost. Signup and view all the answers

What are five common international entry modes?

The Five Common International-Expansion Entry Modes are exporting, Licensing and Franchising, Partnering and Strategic Alliance, Acquisition, Greenfield Venture. Signup and view all the answers

What are the advantages of exporting?

The advantages of exporting is fast entry and low risk. Signup and view all the answers

What is the difference between a strategic alliance and an acquisition?

Strategic alliances and acquisitions offer cost-sharing and fast entry, respectively, but can be expensive and may cause integration issues for the acquired firm. Signup and view all the answers

What would influence a firm’s choice of the five entry modes?

A firm chooses also depends on the firm’s size, financial strength, and the economic and regulatory conditions of the target country. A small firm will likely begin with an export strategy. Signup and view all the answers

What is the possible relationship among the different entry modes?

If the target country has a strong business contract and sound legal system, licensing, franchising, or partnerships may be a cost-effective middle-of-the-road option. Signup and view all the answers

As companies look for growth in new areas of the world, they typically prioritize which countries to enter.

PLANNING FOR INTERNATIONAL EXPANSION Signup and view all the answers

Because many markets look appealing due to their or production, it is important for firms to prioritize which countries to enter first and to evaluate each country’s relative merits.

<ol> <li>MARKET SIZE</li> <li>LOW-COST</li> </ol> Signup and view all the answers

IBT (PREFINAL)

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Questions and Answers

Entering a market means understanding the local consumers and what they look for when making a purchase decision. In some markets, price is an important issue.

The next part of due diligence is to understand the regional differences within the country and to not view the country as a monolith.

___________ involves analyzing foreign markets for their potential _____, __________, ________, and _____ needs and practices to aid the company in deciding whether to invest in entering that market.

________ is the degree to which the company’s existing practices, resources and capabilities fit the new market.

Related to _____ _______, another factor for firms to consider when evaluating which country to enter is that of “________”

Companies embark on an expansion strategy for one or more of the following reasons: (1) _____________________ , (2) ___, and (3)

____________ is an important and widely used tool that helps show the big picture of a firm’s external environment, particularly as related to foreign markets.

PESTEL is an acronym for the ____________, ___________, _____________, _____________, ___________, and ___________ contexts in which a firm operates.

MARKETS

There are three steps in the PESTEL analysis. First, ____________________________________________________. Next, __________________________________________________________. Finally, _______________________.

PESTEL analysis provides insight into the status of key market _________, both in terms of their present state and future trends

COSTS

GOVERNMENTS

COMPETITION

FACTORS FAVORING INDUSTRY GLOBALIZATION

___________ involves the sale of products or services in one country that are sourced in another country. In many ways, importing is a stealth form of internationalization.

_________________ occurs when a company contracts with a third party to do some work on its behalf.

___________ occurs when you take a function out of your country of residence to be performed in another country, generally at a lower cost. I

__________________, or outsourcing work to a nondomestic third party, has become very visible in business and corporate strategy in recent years.

A PESTEL analysis examines a target market’s __________, ___________, ___________, ___________, ____________, and _________ dimensions in terms of both its current state and possible trends

The five most common modes of international market entry are ___________, ___________, __________, _________, and ______________________.

What are some of the common motivators for companies embarking on international expansion?

What are some ways in which a company can learn about the needs of local buyers in a new international market?

Why is international market due diligence important?

Discuss the meaning of “corporate fit” in relation to international market expansion.

What are the components of PESTEL analysis?

Name two common mistakes firms make when expanding internationally.

What are the four dimensions of pressures favoring globalization?

Why might importing be considered a stealth form of internationalization or an internationalization entry mode?

What is the difference between outsourcing and offshoring?

What are five common international entry modes?

What are the advantages of exporting?

What is the difference between a strategic alliance and an acquisition?

What would influence a firm’s choice of the five entry modes?

What is the possible relationship among the different entry modes?

As companies look for growth in new areas of the world, they typically prioritize which countries to enter.

Because many markets look appealing due to their __________ or __________ production, it is important for firms to prioritize which countries to enter first and to evaluate each country’s relative merits.

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_________ involves analyzing foreign markets for their potential _, ____, , and _ needs and practices to aid the company in deciding whether to invest in entering that market.

Related to _ _, another factor for firms to consider when evaluating which country to enter is that of “______”

Companies embark on an expansion strategy for one or more of the following reasons: (1) ___________________ , (2) _, and (3)

PESTEL is an acronym for the ______, _, ___, _, _, and _______ contexts in which a firm operates.

There are three steps in the PESTEL analysis. First, ________________. Next, . Finally, _.

A PESTEL analysis examines a target market’s ____, _, _, _, , and _ dimensions in terms of both its current state and possible trends

The five most common modes of international market entry are _____, _, __, _, and __________________.

Because many markets look appealing due to their or production, it is important for firms to prioritize which countries to enter first and to evaluate each country’s relative merits.