Chapter 10: key terms

a decision framework based on the relative distance between home and foreign target country along 4 dimension : cultural distance, administrative and political distance, geographic distance, and economic distance

cultural disparity between an internationlly expanding firm's home country and its targeted host country 

assumption that geographic location alone should not lead to firm-level competitive advantage because firms are now, more than ever, able to source inputs globally

a firm's investments in valu chain activities abroad 

strategy attempting to reap significant economies of scale and location economies by pursuing a global division of labor based on wherever best-of-class capabilities

part of firm's corporate strategy to gain and sustain a competitive advantage when competing against other foreign and domestic companies around the world 

the process of closer intergration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barries, advances in telecommunication, and reductions in transportation costs 

assumption that consumer needs and preferences throughout the world are converging and thus becoming increasingly homogenous 

strategy framework that juxtaposes an MNE faces for cost reductions and local responsiveness to derive four different strategies to gain and sustain competitve advantage when competing globally

strategy that involves leveraging home-based core competencies by selling the same products or services in both domestic and foreign markets 

additional costs of doing business in an unfamiliar cultural and economic environment, and of coordinating across geographic distances

the need to tailor product and service offerings to fit local consumer preferences and host-country requirements 

benefits from locating value chain activities in the world's optimal geographies for a specific activity, wherever that may be 

strategy pusued by MNE's that attempts to maximize local responsiveness, with the intent that local consumers will perceive them to be domestic companies 

a company that deploys resources and capabilities in the procurement, production, and distribution of goods and services in at least 2 countries

world leadership in specific industries

the collective mental and emotional "programming of the mind" that differenciates human groups

strategy that attempts to combine the benefits of a localization strategy (high local responsiveness) with those of a global-standardization strategy (lowest-cost position attainable)