GB 370 TEST 2 OLE MISS GENTRY QUESTIONS
AND ANSWERS
Global efficiencies
location efficiencies
economies of scale
economies of scope
Location efficiencies
seeking lower input cost locations
Economies of scale
larger facilities result in lower costs
Economies of scope
broadening product lines
Multimarket flexibility
international businesses may respond to a change in one country by
implementing a change in another country
,Worldwide learning
the diverse operating environments of multinational corporations (MNCs)
contribute to organizational learning that can be transferred to other operating
environments
Home Replication
utilizing a core competency or a firm-specific advantage developed at home as a
main competitive weapon in foreign markets
Multi-Domestic Strategy
Managing a corporation as a collection of independent operating subsidiaries
frees a firm to customize its products, its marketing campaigns, and operating
techniques to meet local customer needs.
Global Strategy
Viewing the world as a single marketplace and having as a primary goal the
creation of standardized goods and services that will address the needs of
customers worldwide.
Transnational Strategy
Attempting to combine the benefits of scale efficiencies pursued by a global
corporation, with the benefits and advantages of local responsiveness of a multi-
domestic corporation.
Trade growth
,about a little less than 4% increase year on year (whole world)
How to be an importer
-alibaba.com
-you're a reseller
-you're a solution provider
-you're walmart
alibaba.com
You can buy nearly anything on there
You pay with PayPal
You ship it to your house
You're a reseller
You sell the stock on eBay or peddle it around town
You're a solution provider
You talk to the customer in depth about what they want, then you buy it for them
(charge a markup)
You're wal-mart
, You setup an office there and buy all kinds of stuff
Letter of Credit
is issued by a bank at the request of an importer and states the bank will pay a
specified sum of money to a beneficiary, normally the exporter, on presentation of,
specified documents
How is Letter of Credit system attractive
because both parties are likely to trust a reputable bank even if they do not trust
each other
How is payment made in an export transaction?
Most export transactions involve a draft, also called a bill of exchange
A draft
is an order written by an exporter instructing an importer, or an importer's agent,
to pay a specified amount of money at a specified time
sight draft
a draft payable on presentation to the drawee
time draft
allows for a delay in payment - normally 30, 60, 90, or 120 days
AND ANSWERS
Global efficiencies
location efficiencies
economies of scale
economies of scope
Location efficiencies
seeking lower input cost locations
Economies of scale
larger facilities result in lower costs
Economies of scope
broadening product lines
Multimarket flexibility
international businesses may respond to a change in one country by
implementing a change in another country
,Worldwide learning
the diverse operating environments of multinational corporations (MNCs)
contribute to organizational learning that can be transferred to other operating
environments
Home Replication
utilizing a core competency or a firm-specific advantage developed at home as a
main competitive weapon in foreign markets
Multi-Domestic Strategy
Managing a corporation as a collection of independent operating subsidiaries
frees a firm to customize its products, its marketing campaigns, and operating
techniques to meet local customer needs.
Global Strategy
Viewing the world as a single marketplace and having as a primary goal the
creation of standardized goods and services that will address the needs of
customers worldwide.
Transnational Strategy
Attempting to combine the benefits of scale efficiencies pursued by a global
corporation, with the benefits and advantages of local responsiveness of a multi-
domestic corporation.
Trade growth
,about a little less than 4% increase year on year (whole world)
How to be an importer
-alibaba.com
-you're a reseller
-you're a solution provider
-you're walmart
alibaba.com
You can buy nearly anything on there
You pay with PayPal
You ship it to your house
You're a reseller
You sell the stock on eBay or peddle it around town
You're a solution provider
You talk to the customer in depth about what they want, then you buy it for them
(charge a markup)
You're wal-mart
, You setup an office there and buy all kinds of stuff
Letter of Credit
is issued by a bank at the request of an importer and states the bank will pay a
specified sum of money to a beneficiary, normally the exporter, on presentation of,
specified documents
How is Letter of Credit system attractive
because both parties are likely to trust a reputable bank even if they do not trust
each other
How is payment made in an export transaction?
Most export transactions involve a draft, also called a bill of exchange
A draft
is an order written by an exporter instructing an importer, or an importer's agent,
to pay a specified amount of money at a specified time
sight draft
a draft payable on presentation to the drawee
time draft
allows for a delay in payment - normally 30, 60, 90, or 120 days
