A popular yet controversial means for trying to reduce costs.

When a company enters a foreign country and buys property and contructs their business.

Creating goods at home and then shipping them to another country.

Two or more organizations each contribute to the creation of a new entity.

Involves “renting” a firm’s brand name and business processes to local entrepreneurs.

The literal physical distance between the home and target country are a key consideration of this dimension.

This refers to the differences of cultures between the target and home countries.

International business between two countries is also impacted by the differences in their economic factors.

The legal and political systems of the home and target countries determine the administrative distance between the two.

It refers to the potential for government upheaval or interference that could harm business operations within a country.

Refer to the potential for a country's economic country's economic conditions and policies, property rights protection, and currency exchange rates to harm a firm's operations.

A firm using a seeks a middle ground between a multi-domestic strategy and a global strategy. Such a firm tries to balance the desire for lower costs and efficiency with the need to adjust to local preferences within various countries

Firms pursuing an are neither concerned about costs nor adapting to the local cultural conditions.

A firm using a sacrifices responsiveness to local requirements within each of its markets in favor of emphasizing lower costs and better efficiency.

A firm using a does not focus on cost or efficiency but emphasizes responsiveness to local requirements within each of its markets.