Question

1. Name and describe at least three ways that SMEs can internationalize without leaving their home countries. (Ch. 9)

2. Describe how four strategic goals in going global may affect the decision of where to enter. Give examples. (Ch. 10)

3. Describe the five factors that make an industry particularly conducive to collusion. (Ch. 11)

4. Describe the three stages in the formation of an alliance. (Ch. 12)

5. In supply chain management, what are the differences between agility and adaptability? (Ch. 14)

Answer 1

1. The three ways in which SMEs can internationalize without leaving their home countries are:

- indirect exporting- this is done by SMEs though domestic export intermediaries for benefitting from the export business when own resources are not sufficient for dealing with direct export. These intermediaries will act as a middle between the buyers and sellers and helping the SMEs in international exporting

- local suppliers for foreign companies- many companies set their business in a new country and look for local suppliers in that country to save costs. These SMEs can become local suppliers for these foreign companies and internationalize without leaving their own country

- franchisee for international brands- SMEs can buy franchisees of international brands and run internal business in their home country with name and support of these brands. SMEs get experience and knowledge of managing international brands and grow with the brand name which can help them to internationalise lcoally.