There is a statement in international business accepted worldwide “Thank Global, Act Local”, but is it thisstatement false or true.
1. Key facts of International Business:
o Growth of Foreign Direct Investment: More multinational firms.
o Homogeneous demand across countries
o Previouslyclosed foreign markets become open
o The Made in… product becoming an irrelevant notion
o Productions become more concentrated (e.g. 80% of produced Toys are made in China)
Are webeing success /failing because our own decision or by industries trends?
2. Spectrum of Industries
a) Multi- Domestic Industries: A firm’s competitive advantage is largely specific to eachcountry. The industry is present in many countries, but competition occurs on a country by country basis.
b) Global Industries: A firm’s competitive position in one country is strongly affected byits position in other countries. Is an industry in which competition takes place on a worldwide scale and a firm must integrate some activities on worldwide basis.
3. What drives Globalization?+ Economics of Scale & opportunities for learning.
Local Specifity in demand-
It is a trade-off between the Value and the Cost ofadapting to local preferences.
4. Modes of International Expansion
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