GBA cheat sheet

Porter's Five Forces: supplier power, buyer power, threat of new entrants, threat of substitutes, rivalry; high combined intensity implies lower industry profitability.

PESTLE covers Political, Economic, Social, Technological, Legal, Environmental factors; used to scan macro-environment before entry decisions.

CAGE distance framework: Cultural, Administrative, Geographic, Economic distance between home and host markets raises cross-border transaction costs.

Integration-responsiveness grid yields four strategies: global (high integration, low responsiveness), multidomestic (low/high), transnational (high/high), international (low/low).

Uppsala model: firms internationalize incrementally, increasing commitment as market knowledge accumulates; psychic distance moderates pace.

Oli paradigm: Ownership, Location, Internalization advantages explain FDI versus licensing or exporting.

VRIO test: value, rarity, imitability, organization; a resource yields sustained advantage only if all four hold.

Market entry modes rank by control and commitment: export < licensing/franchising < joint venture < wholly owned subsidiary.

Standardization vs adaptation: standardization lowers cost and builds global consistency; adaptation raises local relevance; the choice depends on cultural, regulatory, and technical differences.

Global brand architecture options: corporate umbrella, endorsed brands, house of brands; each trades brand equity transfer against local flexibility.

Price escalation in exporting arises from tariffs, transport, insurance, and intermediary margins, raising landed cost above domestic price.

Incoterms allocate cost, risk, and responsibility between buyer and seller; risk transfers at the named point (e.g., FOB at ship's rail, CIF includes insurance to destination).

Distribution channel length affects control and margin; direct sales give control, indirect channels give reach at lower fixed cost.

Country-of-origin effect: consumers use origin as a quality cue; strength varies by product category and consumer ethnocentrism.

Segment attractiveness uses size, growth, competitive intensity, and fit with capabilities; not size alone.

Sales force structure choices: geographic, product, customer, or matrix; matrix raises coordination cost but serves global accounts.

Hofstede dimensions: power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, long-term orientation, indulgence-restraint.

Trompenaars dimensions include universalism vs particularism and specific vs diffuse; they predict differing views on rules versus relationships.

Hall distinguishes high-context (meaning in situation, implicit) from low-context (explicit, verbal) communication cultures.

GLOBE clusters societies and adds performance orientation and humane orientation to Hofstede-style dimensions.

Cultural intelligence has four capabilities: drive, knowledge, strategy, action; CQ predicts effectiveness in multicultural assignments.

Expatriate failure is driven more by family adjustment and relational skills than by technical competence.

Global virtual teams face time-zone dispersion, language asymmetry, and trust-building delays; explicit process norms mitigate these.

Leadership styles vary in acceptance: directive leadership is more accepted in high power-distance contexts; participative styles fit low power-distance settings.

Interest rate parity: forward premium/discount equals the interest rate differential between two currencies.

Purchasing power parity: relative PPP links exchange rate change to inflation differential; absolute PPP compares price levels of identical baskets.

Transaction exposure affects known cash flows; translation exposure affects consolidated statements; economic exposure affects future competitiveness.

Hedging tools: forwards, futures, options, money-market hedge, currency swaps; options preserve upside at premium cost.

IFRS vs US GAAP differences include treatment of inventory (LIFO permitted under GAAP, prohibited under IFRS) and development costs (capitalized under IFRS conditions).

Consolidation requires translating foreign subsidiary statements: assets/liabilities at closing rate, income at average rate, equity at historical rate; difference goes to CTA.

Free cash flow = operating cash flow minus capital expenditures; used for DCF valuation with WACC as discount rate.

Transfer pricing rules follow the arm's-length principle; OECD BEPS Pillar Two sets a 15% global minimum effective tax rate for large groups.

Comparative advantage: a country gains by specializing where its opportunity cost of production is lower, even without absolute advantage.

Tariffs are taxes on imports; quotas limit quantity; subsidies support domestic producers; standards and licensing act as non-tariff barriers.

WTO principles: most-favored-nation, national treatment, tariff binding, and transparency; dispute settlement adjudicates violations.

Incoterms 2020 groups: any mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and sea/inland waterway (FAS, FOB, CFR, CIF).

Supply chain risk types: supply, demand, operational, financial, and geopolitical; mitigation uses dual sourcing, buffer stock, and nearshoring.

Bullwhip effect: demand distortion amplifies upstream; causes include order batching, price promotions, and rationing games.

Customs valuation commonly uses transaction value; rules of origin determine preferential tariff eligibility under trade agreements.

Total landed cost includes unit price, freight, insurance, duties, taxes, handling, and inventory carrying cost.

Capacity strategy options: lead, lag, or match demand; lead capacity captures upside but carries idle-cost risk.

Location factors for global operations: labor cost, skills, infrastructure, market proximity, tariff/trade regime, and political risk.

Make-or-buy decision weighs fixed cost, volume, core competence, and intellectual property risk.

Critical path method: longest path through the network; its length sets minimum project duration; slack on other paths is float.

Earned value metrics: CV = EV - AC; SV = EV - PV; CPI = EV/AC; SPI = EV/PV; CPI < 1 means over budget.

Project risk response types: avoid, mitigate, transfer, accept; positive risks use exploit, enhance, share, accept.

Agile vs waterfall: agile suits high uncertainty with iterative increments; waterfall suits stable, well-defined scope.

Lean operations target waste (overproduction, waiting, transport, overprocessing, inventory, motion, defects) and use pull scheduling with kanban.

FCPA prohibits bribery of foreign officials and requires accurate books and records; third-party agents create liability if payments are improperly channeled.

UK Bribery Act covers bribery in any jurisdiction and includes a corporate offense of failing to prevent bribery; adequate procedures are a defense.

Facilitation payments are a narrow FCPA exception but are generally prohibited under the UK Bribery Act.

OECD Anti-Bribery Convention requires criminalization of foreign bribery and enforcement cooperation among signatories.

Compliance program elements: risk assessment, top-level commitment, code of conduct, due diligence on partners, training, monitoring, and discipline.

Antitrust/competition law prohibits price fixing, market allocation, and bid rigging; leniency programs incentivize self-reporting.

Data protection: GDPR requires lawful basis, data subject rights, and cross-border transfer safeguards; penalties scale with global turnover.

Whistleblower protections and internal reporting channels reduce detection lag and legal exposure.

ERP integrates core processes (finance, supply chain, HR) in a single data model; benefits depend on process standardization before go-live.

Cloud models: IaaS provides infrastructure, PaaS provides development platforms, SaaS provides applications; responsibility shifts from provider to consumer accordingly.

Data governance defines ownership, quality standards, access controls, and lifecycle; without it, analytics outputs are unreliable.

API-first architecture enables interoperability across systems and partners; microservices increase modularity at the cost of operational complexity.

Digital maturity models (e.g., capability-based) assess strategy, data, technology, and talent; maturity is not the same as spend.

Cybersecurity risk management includes asset inventory, access control, encryption, incident response, and third-party risk review.

Automation ROI depends on process volume, variability, and exception rate; high-exception processes yield lower returns.

Change management (e.g., ADKAR, Kotter) predicts adoption; resistance is addressed through communication, training, and sponsorship.

Triple bottom line: people, planet, profit; reporting integrates social, environmental, and financial performance.

Materiality assessment identifies ESG topics that affect enterprise value and stakeholder decisions; double materiality adds impact on society.

GRI sets impact-focused reporting standards; ISSB/IFRS S1-S2 set investor-focused sustainability disclosure; CSRD mandates reporting in the EU.

Scope 1 emissions are direct; Scope 2 are purchased energy; Scope 3 are value-chain emissions, usually the largest share.

Science-based targets align emissions reduction with Paris Agreement pathways (commonly 1.5°C).

Circular economy principles: design out waste, keep materials in use, regenerate natural systems; contrasted with linear take-make-dispose.

ESG ratings diverge because of differing methodologies and weightings; ratings are not directly comparable across providers.

Greenwashing risk arises from unsubstantiated claims; mitigation requires verifiable data, third-party assurance, and clear disclosure.

Porter's Five Forces: supplier power, buyer power, threat of new entrants, threat of substitutes, rivalry; high combined intensity implies lower industry profitability.

PESTLE covers Political, Economic, Social, Technological, Legal, Environmental factors; used to scan macro-environment before entry decisions.

CAGE distance framework: Cultural, Administrative, Geographic, Economic distance between home and host markets raises cross-border transaction costs.

Integration-responsiveness grid yields four strategies: global (high integration, low responsiveness), multidomestic (low/high), transnational (high/high), international (low/low).

Uppsala model: firms internationalize incrementally, increasing commitment as market knowledge accumulates; psychic distance moderates pace.

OLI paradigm: Ownership, Location, Internalization advantages explain FDI versus licensing or exporting.

VRIO test: value, rarity, imitability, organization; a resource yields sustained advantage only if all four hold.

Market entry modes rank by control and commitment: export < licensing/franchising < joint venture < wholly owned subsidiary.

Standardization vs adaptation: standardization lowers cost and builds global consistency; adaptation raises local relevance; the choice depends on cultural, regulatory, and technical differences.

Global brand architecture options: corporate umbrella, endorsed brands, house of brands; each trades brand equity transfer against local flexibility.

Price escalation in exporting arises from tariffs, transport, insurance, and intermediary margins, raising landed cost above domestic price.

Incoterms allocate cost, risk, and responsibility between buyer and seller; risk transfers at the named point (e.g., FOB at ship's rail, CIF includes insurance to destination).

Distribution channel length affects control and margin; direct sales give control, indirect channels give reach at lower fixed cost.

Country-of-origin effect: consumers use origin as a quality cue; strength varies by product category and consumer ethnocentrism.

Segment attractiveness uses size, growth, competitive intensity, and fit with capabilities; not size alone.

Sales force structure choices: geographic, product, customer, or matrix; matrix raises coordination cost but serves global accounts.

Hofstede dimensions: power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, long-term orientation, indulgence-restraint.

Trompenaars dimensions include universalism vs particularism and specific vs diffuse; they predict differing views on rules versus relationships.

Hall distinguishes high-context (meaning in situation, implicit) from low-context (explicit, verbal) communication cultures.

GLOBE clusters societies and adds performance orientation and humane orientation to Hofstede-style dimensions.

Cultural intelligence has four capabilities: drive, knowledge, strategy, action; CQ predicts effectiveness in multicultural assignments.

Expatriate failure is driven more by family adjustment and relational skills than by technical competence.

Global virtual teams face time-zone dispersion, language asymmetry, and trust-building delays; explicit process norms mitigate these.

Leadership styles vary in acceptance: directive leadership is more accepted in high power-distance contexts; participative styles fit low power-distance settings.

Interest rate parity: forward premium/discount equals the interest rate differential between two currencies.

Purchasing power parity: relative PPP links exchange rate change to inflation differential; absolute PPP compares price levels of identical baskets.

Transaction exposure affects known cash flows; translation exposure affects consolidated statements; economic exposure affects future competitiveness.

Hedging tools: forwards, futures, options, money-market hedge, currency swaps; options preserve upside at premium cost.

IFRS vs US GAAP differences include treatment of inventory (LIFO permitted under GAAP, prohibited under IFRS) and development costs (capitalized under IFRS conditions).

Consolidation requires translating foreign subsidiary statements: assets/liabilities at closing rate, income at average rate, equity at historical rate; difference goes to CTA.

Free cash flow = operating cash flow minus capital expenditures; used for DCF valuation with WACC as discount rate.

Transfer pricing rules follow the arm's-length principle; OECD BEPS Pillar Two sets a 15% global minimum effective tax rate for large groups.

Comparative advantage: a country gains by specializing where its opportunity cost of production is lower, even without absolute advantage.

Tariffs are taxes on imports; quotas limit quantity; subsidies support domestic producers; standards and licensing act as non-tariff barriers.

WTO principles: most-favored-nation, national treatment, tariff binding, and transparency; dispute settlement adjudicates violations.

Incoterms 2020 groups: any mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and sea/inland waterway (FAS, FOB, CFR, CIF).

Supply chain risk types: supply, demand, operational, financial, and geopolitical; mitigation uses dual sourcing, buffer stock, and nearshoring.

Bullwhip effect: demand distortion amplifies upstream; causes include order batching, price promotions, and rationing games.

Customs valuation commonly uses transaction value; rules of origin determine preferential tariff eligibility under trade agreements.

Total landed cost includes unit price, freight, insurance, duties, taxes, handling, and inventory carrying cost.

Capacity strategy options: lead, lag, or match demand; lead capacity captures upside but carries idle-cost risk.

Location factors for global operations: labor cost, skills, infrastructure, market proximity, tariff/trade regime, and political risk.

Make-or-buy decision weighs fixed cost, volume, core competence, and intellectual property risk.

Critical path method: longest path through the network; its length sets minimum project duration; slack on other paths is float.

Earned value metrics: CV = EV - AC; SV = EV - PV; CPI = EV/AC; SPI = EV/PV; CPI < 1 means over budget.

Project risk response types: avoid, mitigate, transfer, accept; positive risks use exploit, enhance, share, accept.

Agile vs waterfall: agile suits high uncertainty with iterative increments; waterfall suits stable, well-defined scope.

Lean operations target waste (overproduction, waiting, transport, overprocessing, inventory, motion, defects) and use pull scheduling with kanban.

FCPA prohibits bribery of foreign officials and requires accurate books and records; third-party agents create liability if payments are improperly channeled.

UK Bribery Act covers bribery in any jurisdiction and includes a corporate offense of failing to prevent bribery; adequate procedures are a defense.

Facilitation payments are a narrow FCPA exception but are generally prohibited under the UK Bribery Act.

OECD Anti-Bribery Convention requires criminalization of foreign bribery and enforcement cooperation among signatories.

Compliance program elements: risk assessment, top-level commitment, code of conduct, due diligence on partners, training, monitoring, and discipline.

Antitrust/competition law prohibits price fixing, market allocation, and bid rigging; leniency programs incentivize self-reporting.

Data protection: GDPR requires lawful basis, data subject rights, and cross-border transfer safeguards; penalties scale with global turnover.

Whistleblower protections and internal reporting channels reduce detection lag and legal exposure.

ERP integrates core processes (finance, supply chain, HR) in a single data model; benefits depend on process standardization before go-live.

Cloud models: IaaS provides infrastructure, PaaS provides development platforms, SaaS provides applications; responsibility shifts from provider to consumer accordingly.

Data governance defines ownership, quality standards, access controls, and lifecycle; without it, analytics outputs are unreliable.

API-first architecture enables interoperability across systems and partners; microservices increase modularity at the cost of operational complexity.

Digital maturity models (e.g., capability-based) assess strategy, data, technology, and talent; maturity is not the same as spend.

Cybersecurity risk management includes asset inventory, access control, encryption, incident response, and third-party risk review.

Automation ROI depends on process volume, variability, and exception rate; high-exception processes yield lower returns.

Change management (e.g., ADKAR, Kotter) predicts adoption; resistance is addressed through communication, training, and sponsorship.

Triple bottom line: people, planet, profit; reporting integrates social, environmental, and financial performance.

Materiality assessment identifies ESG topics that affect enterprise value and stakeholder decisions; double materiality adds impact on society.

GRI sets impact-focused reporting standards; ISSB/IFRS S1-S2 set investor-focused sustainability disclosure; CSRD mandates reporting in the EU.

Scope 1 emissions are direct; Scope 2 are purchased energy; Scope 3 are value-chain emissions, usually the largest share.

Science-based targets align emissions reduction with Paris Agreement pathways (commonly 1.5°C).

Circular economy principles: design out waste, keep materials in use, regenerate natural systems; contrasted with linear take-make-dispose.

ESG ratings diverge because of differing methodologies and weightings; ratings are not directly comparable across providers.

Greenwashing risk arises from unsubstantiated claims; mitigation requires verifiable data, third-party assurance, and clear disclosure.