This topic contains a solution. Click here to go to the answer

Author Question: Briefly describe the four strategic alternatives for international business. Identify the four basic ... (Read 101 times)

ahriuashd

  • Hero Member
  • *****
  • Posts: 535
Briefly describe the four strategic alternatives for international business. Identify the four basic components of any type of international strategy.
 
  What will be an ideal response?

Question 2

Explain the theory of purchasing power parity. How does it affect arbitrage?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vboyd24

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

The four strategies are home replication, multidomestic, global, and transnational. A home replication strategy means that the organization simply replicates what has worked in the home market in its markets abroad. A multidomestic strategy suggests that a firm operates differently in its various markets based on local market characteristics. A global strategy means that the firm attempts to develop global efficiencies by standardizing its activities from country to country. A transnational strategy suggests that the firm attempts to respond to local market preferences while achieving global efficiencies. The appropriate strategy is based on a firm's need for local responsiveness and its need for global efficiencies. The components are distinctive competence, scope of operations, resource deployment, and synergy.

Answer to Question 2

This theory states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across countries as a result of exchange rate changes. Purchasing power parity occurs because the process of buying goods in the cheap market and reselling them in the expensive market affects the demand for, and the price of, the foreign currency, as well as the market price of the good itself in the two product markets in question. When purchasing power parity occurs, there is no reason to cross borders to purchase the products.




ahriuashd

  • Member
  • Posts: 535
Reply 2 on: Jul 7, 2018
Great answer, keep it coming :)


upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

For a complete list of videos, visit our video library