Answer to Question 1
A SWOT analysis is a summary of the external issues (opportunities and threats) and internal resources (strengths and weaknesses) that are most likely to influence the future or intended direction of the firm. In comparing the company with potential international competitors in host markets, a SWOT analysis becomes useful for managers to draw up a competitive position matrix for each potential location. This analysis is used after assessing the external and internal environments to help firms determine their strategic direction.
Answer to Question 2
Globalization is the strategy of treating the world as an undifferentiated marketplace, and the establishment of worldwide operations and the development of standardized products and marketing. A regionalization strategy focuses more on certain regions of the world only and their distinctiveness. With a regionalization strategy, local markets are linked together within a region allowing more local responsiveness and specialization. Globalization requires establishing worldwide economies of scale; regionalization requires flexibility and adaptability.
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