Key Terms
Internationalization:
Internationalization is the process of generalizing a product so that
it can handle multiple languages and cultural conventions without the
need for re-design. Internationalization takes place at the level of
program design and document development.
An internationalized product:
* Reduces cost and time to market;
* Facilitates the localization of the product.
Localization: Localization
involves taking a product and making it linguistically and culturally
appropriate to the target locale (country/region and language) where
it will be used and sold.
Globalization:
Globalization addresses the business issues associated with taking a
product global. In the globalization of high-tech products this
involves integrating localization throughout a company, after proper
internationalization and product design, as well as marketing, sales,
and support in the world market.
Globalization
Strategies
Global Strategy
Product is the same in all
countries.
Centralized control - little decision-making authority on the
local level.
Effective when differences between countries are small.
Advantages: cost, coordinated activities, faster product
development.
Multi-domestic Strategy
Product customized for each market.
Decentralized control - local decision making.
Effective when large differences exist between countries.
Advantages: product differentiation, local responsiveness,
minimized political risk, minimized exchange rate risk.
