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Motivations for taking a business global :

Select the correct answer(s).  

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Avoidance of regulations, maturity level, currency exchange rate.

Increased profits (/!\expansion costs), decline in sales and large market outside of the home country.

Increased profits (/!\expansion costs), standardization, lower costs (labor, manufacturing, raw material).

Avoidance of regulations, end of product life cycle, lower costs (labor, manufacturing, raw material).

none

Novartis case in India :

Select the correct answer(s).  

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India's Supreme Court has rejected a plea by Novartis to patent an updated version of its diabetic drug, Gudu.

Human Rights Court said the decision "is a major innovation in the pharmaceutical sector".

India's Supreme Court has rejected a plea by Novartis to patent an updated version of its cancer drug, Glivec.

Novartis said the decision "discourages future innovation in India".

none

Control of foreign operation phases :

Select the correct answer(s).  

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Large companies : local networks in foreign countries (more independent and free to makes decisions). Local management is easier to apply the decisions made at home.

Growing companies : local networks in foreign countries (more independent and free to make decisions) / Large companies : control is brought back to the HQ and procedures are implemented to improve communication.

Infancy : very centralized decision making process (limited circle of advisors & partners). / Growing companies : control is brough back to the HQ and procedures are implemented to improve communication.

Infancy : very centralized decision making process (limited circle of advisors & partners).

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San Nicasio chips case :

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Entrepreneur turns his 'churros' shop into an international chips producting factory.

They had nothing to do during the morning so they did churros and went international

Entrepreneur turns his 'chips' shop into an international churros producting factory.

They had nothing to do during the afternoon so they did chips and went international.

none

Company specific indicators should be developed to determine :

Select the correct answer(s).  

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Overal market size and Market growth indicators.

Innovation indicators.

Product indicators.

Market penetration and Market openess indicators.

none

Hofstede

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Uncertainty Avoidance, Short/Long-Term orientation, Paternalism/Liberalism.

Uncertainty Avoidance, Short/Long-Term orientation, Indulgence/Restraint.

Power Distance, Individualisme/Collectivism, Altruism/Fachism.

Power Distance, Individualisme/Collectivism, Feminity/Masculanity.

none

Entrepreneur's strategy and trade barriers :

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Foreign Direct Investment (FDI) includes : Joint Ventures, participation in management, M&A's, ... FDI is a controlling ownership in a business enterprise in one country by an entity based in another country.

Trade barriers, local content restrictions and concerns over IP decrease risks and costs.

Foreign Direct Investment (FDI) includes : Partnerships, controlling min. 5% of the shares, Trading Agreements... FDI is a passive investment in the securities of another country such as public stocks and bonds.

Trade barriers, local content restrictions and concerns over IP increase risks and costs.

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Strategic issues (International environment):

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Does the product meet the demand in the new market (consumers need to adapt ?) and do they have the same currency (possibility to use Paypal) ?

Similarities of the market in each country (can we form sub-groups ?) and Bargaining power.

Characteristics of the market in each country (can we form sub-groups ?) and Purchasing power.

Does the product meet the demand in the new market (new product to be developed ?) and what are the banking/payment structures

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Strategic effects (International Environment) :

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Similarity to customers (physical/psychological), perceived similarities distracts from potential differences.

Proximity to customers (physical/psychological), perceived psychological proximity distracts from potential differences.

Variety of new documents (red tape) and proximity at entrepreneur level (physical) may override other types of distance.

Variety of new documents (red tape) and similarity at entrepreneur level may override other type of distance.

none

Born Global Enablers :

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Global Human Mobility, Rush to Reach Similar Markets and Access to Funding.

IT, Global Human Mobility, Rush to Reach New Emerging Markets.

Homogenization/Standardization of Global Markets, Information Technology and Digitalization of Business resources.

Homogenization/Standardization of Global Markets, Lower Global Barriers and Transaction Costs.

none

Information to seek out before determining foreign market to enter :

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Competitors and perceptive/political/financial stability.

Demographics and infrastructure.

Competitors and political/financial/legal stability.

Culture and psychological perception.

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Born Global firms...

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Operate globally from their expansion period.

Leverage resources, markets, suppliers and human capital from many countries (competitive advantage).

Leverage bargaining power, suppliers and human capital from many countries (competitive advantage).

Operate globally from day one.

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Seven Cultural Determinants :

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Language, organizational structure, Culturality.

Religion, Political philosophy, Economics, Manners and Customs.

Language, social structure, Education.

Religion, Educationnal1 philosophy, Economics, Duties and Customs.

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What to consider when comparing your home country to a foreign country ?

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Sociological, Technological and Global.

Technological, Environment and Legal.

Cultural, Ecological and Political.

Economic, Social and Political.

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Born Global firms...

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Only commit resources in their domestic border but can sell goods beyond those borders.

Are also called "Micro-Multinationals".

Are also called "Macro-Multinationals".

Commit resources beyond domestic borders.