1.Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely upon an export strategy to compete in foreign markets.
2.Discuss in some detail the difference between a multicountry strategy and a global strategy and give the pros and cons of each.
3.What circumstances call for use of a multicountry strategy for competing in international markets? When is a global strategy “superior” to a multicountry strategy?
4.Identify and briefly describe any four of the six generic strategic options for competing in foreign markets.
5.Discuss why a company desirous of competing in foreign country markets needs to pay close attention to the advantages of cross-border transfer of competencies and capabilities. Is such transfer often a key to competitive advantage? Why or why not?
6.Explain what a profit sanctuary is and why it is a competitive plus.
7.Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations? Under what circumstances is it advantageous for a company competing in foreign markets to disperse certain value chain activities across many countries?
8.Explain why a global competitor with multiple profit sanctuaries is well positioned to outcompete a domestic competitor whose only profit sanctuary is its home market.
9.Companies desirous of launching global strategic offensives can choose among such strategy options as (1) cross-market subsidization, (2) attacking a rival’s profit sanctuaries and (3) dumping goods at cut-rate prices. Explain what is meant by each of these options.
10.Identify and briefly describe a local company’s strategic options in competing against global challengers if industry pressures for globalization are strong.
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