credit risk.
political risk.
financial risk.
business risk.
existence of traditional rule.
non existence of industries.
predominance of agriculture.
complete absence of literacy.
Emerging economy
Developed economy
Less developed economy
None of these
GLOBAL
TRANSNATIONAL
INTERNATIONAL
MULTI-DOMESTIC
Measures that lead to restrictions in quantities.
Discouraging measures that limit a companys imports
Discouraging measures that limit a companys exports.
ALL OF THE ABOVE
Asset seeking FDI.
Backward vertical FDI.
Forward vertical FDI.
Distribution FDI.
Place of origin of goods.
Special characteristics of the product associated with the place of origin.
Place and special characters of the product.
Place or special characters of the product.
lower level of stress among people.
decision taken as a result of group consensus.
less dependence on rules and regulations.
people are serene.
Proforma invoice
Purchase order
Sales contract
All the above
Male- female ratio in the country.
Society dominated by male members.
Society characterized by aggressive and materialistic behaviour.
War- ridden societies.
Polycentric Approach
Regiocentric Approach
Ethnocentric Approach
Geocentric Approach
High level of inequality of power and wealth within the society
Low level of inequality of power and wealth within the society
High level of Political corruption
Low level of Human development Index
Licensing
Exporting
Wholly owned subsidiaries
Foreign Direct Investment
Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry.
Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of recession.
Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry.
Threat of entry; power of buyers; power of suppliers; threat of substitutes; government action
lower than per capita GNI.
higher than per capita GNI.
same as per capita GNI.
may be lower or higher than per capita GNI.
Imports
Exports
Imports and Exports
All of the above
Innovation is encouraged.
International cooperation is encouraged.
Imports are rendered cheap.
Consumption is minimized.
Standardization v/s adaptation
Globalization v/s localization
Global integration v/s Local Responsiveness
Local responsiveness
age of mass consumption.
age of mass production.
maturity.
drive to maturity.
Subsidiary
Joint venture
Strategic International Alliance
License agreement
Language
Laws, rules and regulations
Cost of resources
Infrastructure related factors
Develop a long term view of strategy.
Build plausible views of different possible futures and develop a long term view of strategy.
Identify key drivers of change.
Develop a view of an environment which has a high degree of uncertainty, build plausible views of different possible futures and take a long term view of strategy.
Can earn a return on knowledge asset
Will not create a competitor
Tight control of operations
All the above
At least one -third directors are foreign nationals
The company does 40% of its business in foreign markets
The overseas markets are larger than the domestic market
The affiliates are responsive tio a number of important environmental forces
Profit will be less.
Size of investment will be high.
Lesser control in management.
Delay in establishment.
Sight Draft.
Usance Draft
Demand draft
Pay Note
Global
International
Multi-domestic
Transnational
Countries specializing in production of goods they are best suited for.
Reduction in taxes.
Increased factor income.
Encouraging competition.
attitude towards entrepreneurship.
gifting practices.
use of products.
all of the above.
USA
INDIA
CHINA
BRAZIL