Advanced Corporate Strategy

ST104x

What is geographic diversification

Internationalization is a form of geographic diversification. When a firm expands its

geographic scope of operations from one place to another, enters a new market (especially a
new country), it is known as geographic diversification. Of course, there are certain countries
that are as diverse in consumer preferences and segments like India and China; whereas there
are geographies with relatively smaller countries with homogenous preferences like
Continental Europe.

The study of why firms internationalize, the benefits and costs of internationalization, how
they grow and leverage their international presence, and the management of a global firm
has been subject of an entire discipline of management – international business.

In this module, we will focus on the strategic decisions around internationalization.

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