IBT REVIEW

WHAT ARE THE BENEFITS OF GLOBAL STRATEGIES?

Answer explanation

INCREASE IN MARKET SIZE

RETURN ON INVESTMENTS

THE ECONOMIES OF SCALE

EXCHANGE IN TECHNICAL AND LEARNING PROCESS

LOCALIZED OPERATIONAL ADVANTAGE

There could be a dramatic increase in the market as firm move into the global market. As part of the firms'expansion effort they have to be successful in the emerging market by providing incentives to retailers tostock its products and use local banking facilities and agents in collecting payments.

Answer explanation

INCREASE IN MARKET SIZE

The primary reason in investing in foreign market is to generate above average return on investments.Firms that have specialized in a certain type of product and have expanded both horizontally and verticallyin the local market, have to find a new source of investments where they could use their available resourcesfor new business opportunities worldwide.

Answer explanation

RETURN ON INVESTMENTS

Firms enjoy the _________ by producing and distributing products internationally.

Answer explanation

THE ECONOMIES OF SCALE

The firm can standardize their products that can be suitable to all types of customers worldwide especially in theelectronic industry and other consumer products.

Answer explanation

THE ECONOMIES OF SCALE

No country is a monopoly of knowledge base. Each country developed core competencies that can be usedin the international market through resource and knowledge sharing between units across country borders.The sharing generates synergy that contributes to the production of higher quality goods and services atlower cost.

Answer explanation

Exchanges in Technical and Learning Process

Some firms operate in another country because of the lower labor cost.

Answer explanation

Localized Operational Advantages

It is also known as case law, ____ is a legal system that originated in England and spread toAustralia, Canada, the United States, and former members of the British Commonwealth.

Answer explanation

Common Law

also known as code law, ____ is found in France, Germany, Italy, Japan, Turkey, and Latin America.Its origins go back to Roman law and the Napoleonic Code.

Answer explanation

Civil Law

is based on an all-inclusive system of laws thathave been codified; the laws are clearly written and accessible. It is divided into three codes: commercial, civil, andcriminal.It is considered complete as a result of catchall provisions found within the law. Rules and principlesform the starting point for legal reasoning and administering justice.

Answer explanation

Civil Law