Answer to Question 1Some focal firms now use the Internet to sell products directly to customers rather than going through traditional wholesale and retail channels. By eliminating traditional intermediaries, companies can sell their products cheaper and faster. This benefits SMEs in particular because they typically have limited resources for international operations.
Countless online intermediaries broker transactions between buyers and sellers worldwide. Emergent technologies offerand sometimes requirenew roles that intermediaries have not taken previously. Many traditional retailers establish Web sites or link with online service providers to create an electronic presence. The electronic sites of retailers such as Tesco
(
www.tesco.com) and Walmart (
www.walmart.com) complement existing physical distribution infrastructures and bring more customers into physical outlets.
Answer to Question 2It is most appropriate when the pressures for global integration are high, but the need for local responsiveness is low.
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