In a world of zero transportation costs, no trade barriers, and nontrivial

differences between nations with regard to factor conditions, firms must

expand internationally if they are to survive. Discuss.



. In what kind of industries does a localization strategy make sense?

When does a global standardization strategy make most sense?


 Reread the Management Focus: “AB InBev, Beer Globally, and

Creating Value,” and then answer the following questions:

a. With more than 200 brands and strong coverage internationally of the

different brands, strategically AB InBev is a unique and highly

organized global company. Do they have too many brands? Why or

why not?


b. The company follows a focused brands strategy in which the majority

of the resources are devoted to those brands that have the greatest

long-term growth potential. What positives and negatives do you see

with this approach?


c. Strategically, AB InBev has 10 principles driving everything they do.

At the core, AB InBev is focused on a shared dream that energizes

everyone to work in the same direction to be the best beer company in

the world, bring people together, and aspire for the betterment of the

world. Additional principles cover people strengths, quality of teams,

striving for increased satisfaction, consumer focus, ownership,

common sense and simplicity, cost management, leadership, and hard

work and responsibility. Should large multinational corporations really

be built on strong principles or do they need a more flexible structure?



. What do you see as the main organizational problems that are likely to

be associated with the implementation of a transnational strategy?