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.


2. Plot the position of the following firms on Figure 12.8: Procter &

Gamble, IBM, Apple, Coca-Cola, Dow Chemical, U.S. Steel,

McDonald’s. In each case, justify your answer.


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

When does a global standardization strategy make most sense?


4. 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?