Name o5. Internationalization Motives and Emerging Market Mutinationals (MNE) (a

Question

Name o5. Internationalization Motives and Emerging Market Mutinationals (MNE) (a) Firms internationalize for many reasons. What motives do they have if they plan to internationalize as follows? Use appropriate jargons to A U.S. firm seeking low labor cost in China A U.S. firm seeking bilingual labor in describe the motives. IS pointsl Reasons for internationalization Motives Cost driven labor-sh:1 driven Slovakia A U.S. firm, seeking ways to bypass tax Reaul athen doven regulations in the U.S A Russian firm seeking a large demand for its product in the European Union A foreign firm seeking the Nike brand De mantdiven tdentihy deiven (03) Give an example of a push factor and an example of a pull factor for 'laier to enter India. 12 points Push: Wnfesorable US taries poties Pul: cheepes lobos materials Pull: °C/ (e) Briefly explain why Haier was not so successful when it entered India in early 2000s. What was wrong in its product, pricing and promotion strategy? 17 points Product strategy: Tndian market too high, was ineffective Pricing strategy: ndian fromoted a ects of the product. that were hot desicable to Trdian consumes Promotion strategy:

Explanation / Answer

5-a- All are correct

b- Push factor example- More competition in USA and market is not that large

Pull Factor- Larger market size in India where demand is much more.

C-Product strategy-

Pricing strattegy

-It has practiced Penetration Pricing

-Focus only on high end product

Promotion strategy

- Never tried to cash in on its MNC appeal

- Minimal spending on Brand Building and Marketing

-Weak distribution network compared to competitors

d- -Global integration

-Easy flow of capital

-High disposable income and higher number of Nuclear Families in the  society

- Customer responsiveness

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