Exam 8: Strategy in the Global Environment

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One advantage of a joint venture is that a company may benefit from a local partner's knowledge of the many dimensions of a host country.

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Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion.

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Companies that pursue a strategy are trying to develop a business model that simultaneously achieves low costs, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company's global network of operations.

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Local responsiveness may be driven by economic and political demands placed on companies by host country governments.

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