good book hihi
Chapter 1 – The Rapid Change of International Business
Firms that have substantial operations in more than one country:
-global company (GC): an organisation that attempts to standardize operations and integrate operations worldwide in most or all functional areas
- multidomestic company (MDC): an organisation that multicountry affiliates, each of which formulates its own business strategy based on perceived market differences
- international company (IC)/ multinational enterprise (MNE)/ multinational company
(MNC): a global or multidomestic company
Globalization forces: Five kind of drivers, all based on change, that are leading international firms to the globalization of their operation (+ examples):
1. political – preferential trading agreements, progressive reduction of trade barriers, foreign investments by most governments, privatization of much of the industry in formerly communist nations and the opening of their economies
2. technological – advances in communication technology, global communication networks, internet and network computing
3. market – global firms become global customers
4. cost – globalization of product lines and production helps reduce costs by achieving economies of scale
5. competitive – firms are defending their home markets from foreign competitors by entering the foreign competitors market to distract them why international business differs from domestic business?!
- it involves three environments:
- domestic
- foreign
- international
- the kinds of forces are the same but their values often differ and changes in the values of foreign forces are at time more difficult so assess
- international environment: (Def.)
- interactions between the domestic environmental forces and the foreign environmental forces AND
- interactions between the foreign environmental forces of two countries when an affiliate in one country does business with customers in another
- see: International business model
The forces:
Firms that have substantial operations in more than one country:
-global company (GC): an organisation that attempts to standardize operations and integrate operations worldwide in most or all functional areas
- multidomestic company (MDC): an organisation that multicountry affiliates, each of which formulates its own business strategy based on perceived market differences
- international company (IC)/ multinational enterprise (MNE)/ multinational company
(MNC): a global or multidomestic company
Globalization forces: Five kind of drivers, all based on change, that are leading international firms to the globalization of their operation (+ examples):
1. political – preferential trading agreements, progressive reduction of trade barriers, foreign investments by most governments, privatization of much of the industry in formerly communist nations and the opening of their economies
2. technological – advances in communication technology, global communication networks, internet and network computing
3. market – global firms become global customers
4. cost – globalization of product lines and production helps reduce costs by achieving economies of scale
5. competitive – firms are defending their home markets from foreign competitors by entering the foreign competitors market to distract them why international business differs from domestic business?!
- it involves three environments:
- domestic
- foreign
- international
- the kinds of forces are the same but their values often differ and changes in the values of foreign forces are at time more difficult so assess
- international environment: (Def.)
- interactions between the domestic environmental forces and the foreign environmental forces AND
- interactions between the foreign environmental forces of two countries when an affiliate in one country does business with customers in another
- see: International business model
The forces: