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 115 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
Gracias!


ashely1112

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

For a complete list of videos, visit our video library