Assignment 3
Differentiate b/w import and Export?
Import
Definition
Import is when a company buys goods
from another country, with an aim of
reselling it in the domestic market.
Objective
To meet the demand for goods which
are not available in the domestic
country.
Benefit
High level of import is an indicator of
robust domestic demand.
Differentiate b/w Joint venture and Strategic
Alliance?
Joint Venture
Definition
A specific type of strategic alliance in
which the partners agree to form a
separate, independent organization for
some business purpose.
Independent Organization
The entities which come together in a
joint venture, do not continue to
operate as independent companies.
Separate Legal Entity
it has a separate legal entity. Means
Export
Definition
Export is when a company provides
goods and services to the other
countries for selling purposes.
Objective
To increase the market share or global
presence
Benefit
High level of export is an indicator of
trade surplus.
Strategic Alliance
Definition
Partnerships between and organization
and a foreign company in which both
share resources and knowledge in
developing new products or building
new production facilities.
Independent Organization
The entities which come together in a
strategic alliance, continue to operate
as independent companies.
Separate legal entity
it does not have a separate legal entity
that this type of organization has means that it does not have separate
separate existence. existence.
Objective Objective
Joint Venture refers to a form of Strategic Alliance implies an
business organization, set up by two or agreement amidst two or more entities
more companies, to carry out financial to work jointly with one another, to
activity. increase performance of both the
entities
Management Management
A joint venture has bilateral A delegated management can be found
management in a strategic alliance.

Differentiate b/w Global business and INVs?

Global business
Definition
A global company is an international
company that centralizes management
and other decisions in the home
country.
Attitude
This approach to globalization reflects
the ethnocentric attitude.
Objective
Global companies treat the world
market as an integrated whole and
focus on the need for global efficiency
and cost savings.
International New Ventures
(INVs)
Definition
An INV is defined as a business
organization that, from inception, seeks
to derive significant competitive
advantage from the use of resources
and the sale of outputs in multiple
countries
Attitude
This approach to globalization reflects
the ethnocentric attitude
Objective
INVs main objective is Commit
resources upfront (material, people,
financing) to doing business in more
than one country.

Decision making Decisions making

Although these companies may have Normally INVs have decentralized
considerable global holdings, decision making.
 management decisions with company-
wide implications are made from
headquarters in the home country.
Differentiate b/w Global multi-international
company and multi-domestic company?
Global Company
Definition
Any company having operations and trading
in many countries across the world within
that country is known as Global company.
Attitude
This approach to globalization reflects the
ethnocentric attitude.
Decision making:
Normally multi-domestic company have
centralized decision making. All the decisions
are made by centralized authority.
Main focus
Global companies treat the world market as
an integrated whole and focus on the need for
global efficiency and cost savings.
Example
Examples of global companies include Sony,
Deutsche Bank AG,
THE END
Multi-Domestic Company
Definition
Any company having operations and trading in
many countries across the world within that
country is known as Multi-domestic company.
Attitude:
This type of globalization reflects the
polycentric attitude.
Decision making:
Normally multi-domestic company have
decentralized decision making.
Main focus
A multidomestic corporation doesn’t attempt to
replicate its domestic successes by managing
foreign operations from its home country.
Example
PepsiCo