Exam 7: Internationalization and Globalization Processes

International departments and worldwide functional structures tend to be used when firms have many markets and products

The extent to which management measures, accountability and incentives programs, and leadership skills are developed with world markets in mind is an example of which type of corporate globalization measure:

Many firms under-estimate the time and resources necessary to internationalize

Global managers are in plentiful supply

The manufacturing operations measure of corporate globalization looks at how far companies standardize production technologies, processes and corporate cultures across world markets

At national, regional and global levels, industry structures have been affected by consolidations, mergers, acquisitions and movements towards increased size

Corporate culture includes authority structures, information flows, organizational structures but excludes organizational formality/informality, competitive/cooperative behaviors and gender-related attitudes

Companies at early stages of internationalization tend to export home market cultures into foreign markets

Scale economies, experience curves and favorable logistics are examples of competitive drivers of corporate globalization

As firms build foreign presences, they acquire economies of scope in reducing sourcing, manufacturing and market costs worldwide

Foreign rivals or imports entering the domestic market are examples of competitive drivers forcing firms to globalize

Companies have but two options in taking corporate cultures abroad: extend the home market culture or 'go native' and localize to the fullest extent

Scale economies, experience curves and favorable logistics are examples of cost drivers of corporate globalization

Polycentric corporate cultures emphasize home-market orientations in strategic decision-making and corporate attitudes

When countries such as Indonesia, India and South Korea open up their markets in response to calls from the IMF and the WTO, firms in these markets respond by globalizing. What type of driver is instrumental in the globalization process:

Experienced global firms have little learning to do as they extend their worldwide operations

Sound judgment, emotional maturity and the ability to see and act on emerging trends seem to be universal characteristics of CEOs

Corporate internationalization is usually measured by:

Information and internet technologies have greatly enhanced the cross-border flows of information among companies and institutions

When firms do not need to integrate their worldwide operations and there are few needs to adapt to local market circumstances, an internationalization strategy should be followed