What Are the Four Basic Types of International Strategies That

question 79

Essay

What are the four basic types of international strategies that a company may pursue? Explain how the selection of one of these strategies is largely dependent on the relative pressure on the firm to address cost reduction and adaptation to local markets.

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Definitions:

Manufacturing Overhead

These are indirect costs associated with manufacturing, not directly attributable to a specific product, such as factory rent, utilities, and maintenance.

Direct Materials

The raw materials used in the manufacturing process of a product that are directly incorporated into the final product.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the production process, awaiting use in manufacturing.

Factory Utilities

Costs associated with utilities consumed in the manufacturing process, such as electricity, gas, and water.