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Globalization refers to the linkages between markets that exist across national borders.
These linkages may be economic, financial, social, political, in effect, anything that leads to increased interdependence among nations. This implies that what happens in one county has an impact on occurrences in other countries.
Cost Drivers
Government Drivers
Internationalisation
Definition: Expanding participation in foreign markets Pressure for Internationalisation from..
Maturity of domestic markets Integration of international markets Worldwide competition Falling trade barriers
2. Managing Risks
3. Innovation, Learning and Adaptation
2. Economies of Scale
3. Economies of Scope
Globalisation
Global Standardisation
Responsiveness Pressures
Consumer tastes Logistics Regulations
Figure 9.1
Industry Requirements and Company Capabilities
Exporting
Licensing Franchising Joint Ventures and Strategic Alliances Wholly owned subsidiaries
Four attributes:
1. Factor Conditions 2. Demand Conditions 3. Related and Supporting Industries 4. Firm Strategy, Structure, and Rivalry
1. Any Company With Money Can Go Global 2. Internationalization In Services Is Different 3. Distance And National Borders Dont Matter Anymore 4. Developing Countries Are Where The Action Is 5. Manufacture Where Labour Costs Are Cheapest 6. Globalization Is Here To Stay 7. Governments Dont Matter Any More