Level of Involvement in Trade

Global strategic coordination

Universal needs

Pressure to reduce costs

Economic demands

Preferences differ significantly

Consumer tastes

Pressure to reduce costs

Economic and political demands

Difficult to launch coordinated global attacks against competitors

Higher manufacturing costs

Duplication of effort

All answers are true

Cannot realize scale economies

Requires elaborate formal mechanisms to achieve appropriate communications

Requires transfers of managers among subsidiaries

Headquarters must play a proactive role in coordinating activities

Manufacturing costs in home country may exceed those in higher-cost locations

Consistent with pure global strategy

Tariff barriers

Low transportations costs

Following procedures

Management training

Financial Help

Low transportations costs

Maintaining business relationships

Meeting quality standards

Wholesale prices on purchase

Making minimum investment

Shared ownership

Local partner’s knowledge of local business condition

Sharing of development costs and risks

Local laws may make this the only feasible entry mode

Maintain control

Retain tight control over foreign operations

High risk

All answer are true

Joint venture

Mergers

Acquisitions

Strategic Alliances