International Business Strategy: Global Trends and Competitive Advantages

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What is the primary focus of a strategy in a business context?

Establishing a company's vision and values

Defining a particular action

Identifying the competitive advantages (correct)

Setting a specific goal

What is the purpose of Porter's Five Forces Competition Framework?

To develop a company's vision and mission

To create a marketing strategy

To evaluate the attractiveness of an industry (correct)

To analyze the internal operations of a company

What is a key question to consider when evaluating an industry's attractiveness?

What is the company's organizational structure?

What is the target market for the product?

What is the company's mission statement?

Are we in the right business? (correct)

What is an example of a substitute in Porter's Five Forces Competition Framework?

A product with an equivalent function Signup and view all the answers

What is the main difference between a strategy and a goal?

A strategy is about how to achieve a goal, while a goal is what to achieve Signup and view all the answers

What is a key characteristic of distributors in international trade?

They may handle competing products Signup and view all the answers

What is the primary role of trading companies in international trade?

To purchase products from the exporter on behalf of foreign clients Signup and view all the answers

What is an important consideration when selecting a distributor or trading company?

Their reputation and references Signup and view all the answers

What is a key goal to set when developing an international trade strategy?

To achieve a specific volume, market share, or profit margin Signup and view all the answers

What is a critical factor to consider when evaluating the financial commitment to developing an international trade channel?

The capital required for initial inventories Signup and view all the answers

What is an important aspect of managing an international trade channel?

Defining the terms of sale and channel ownership Signup and view all the answers

What is the primary role of the export department in a company?

To find customers and handle documentation for international sales Signup and view all the answers

What is the key advantage of working with an agent or representative?

Low entry cost and immediate presence in the target market Signup and view all the answers

What is a disadvantage of working with an intermediary?

Low profitability of the transaction Signup and view all the answers

What is the role of an agent in international sales?

To sell the exporter's products to wholesalers, retailers, and end users Signup and view all the answers

What is the difference between an agent and a representative?

A representative is a specialized agent who operates within a specific geographic area and/or good Signup and view all the answers

What is the advantage of working with an exclusive agent?

The exclusive right to sell in a specific market or product line Signup and view all the answers

What type of investments may be combined to achieve a family's risk and investment goals?

A combination of traditional and non-traditional investments Signup and view all the answers

What is the primary role of a Private Equity firm?

To invest in private non-listed companies Signup and view all the answers

What is the value of assets under management in Private Equity in 2017?

2.83tnUSD Signup and view all the answers

What happens if a company does not succeed with Mezzanine financing?

The lender has the right to convert the loan into an ownership or equity interest Signup and view all the answers

What is the primary goal of public institutions that provide international trade financing?

To promote the development of international trade Signup and view all the answers

What is the benefit of Mezzanine financing for business owners?

They can keep 100% ownership of their business for as long as it is profitable Signup and view all the answers

What was the aim of the Great Leap Forward?

To rapidly increase industrial and agricultural production Signup and view all the answers

What was the outcome of the Cultural Revolution?

Disruption that led to a significant decline in educational and economic progress Signup and view all the answers

What was the outcome of Deng Xiaoping's reforms?

An increase in GDP from USD 150 billion to over USD 14 trillion Signup and view all the answers

What was the purpose of the Special Economic Zones?

To transform small villages into mega-cities Signup and view all the answers

What was the average annual growth rate of China's economy from 1978 to 2013?

Approximately 9.5% Signup and view all the answers

What is the consequence of not addressing inequality in China?

A threat to China's socio-economic stability and future development Signup and view all the answers