Right moves in international business

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  • Publicado : 25 de abril de 2011
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Overview: Is your company making the right moves in a globalizing world? Having a global overview of some of the issues firms are facing, either because they wish to expand internationally or becauseforeign competition is entering their domestic market. How globalization will affect different firms, based on the features of the industry they operate in as well as on their position within theindustry, posing also how to determine the appropriate modes of international expansion.

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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