1. Three of the four strategic choices for MNES are Home replication, localization,
and global standardization. Home replication strategy is also referred to as
international strategy and it duplicates home country-based competencies foreign
countries. The advantages of home replication are it leverages home country-based
advantages and it is easy to implement. The disadvantages of home replication are
its lack of responsiveness, and it may alienate foreign countries because it tends to
only focus on its home country. Localization strategy is a branch of home
replication, and it focuses on multiple foreign countries which is regarded as a
stand-alone local market worthy of significant attention and adaptation. The
advantages of localization are that it maximizes local responsiveness while the
disadvantages are its high costs and too much local autonomy. Global
standardization is an MNE subsidiary explicitly recognized as a source of important
capabilities that can be leveraged by and disseminated to other subsidiaries. Global
standardizations advantages are it leverages low-cost advantages and its
disadvantages are lack of local responsiveness and too much centralized control.
2. Two of the organizational structures are international division which is an
organization structure that is typically set up when a firm initially expands abroad
and tends to engage in a home replication strategy. The geographical area structure
is another organization structure in that it organizes the MNE according to different
countries and regions.
3. The reciprocal relationship between multinational strategy and structure states that
it is reciprocal. There are three keys that usually stand out when explaining this
relationship. One of the main keys is that strategy drives structure, the relationship
is not a one-way street and neither strategy now structures are static. Many MNEs
have accepted a global product division structure while de-emphasizing the part of
country headquarters.