Strategies companies adopt when they expand outside their domestic marketplace and start to compete on a global scale. One alternative available for companies is to…

Expanding globally allows companies to increase their profitability which is not possible to purely domestic enterprises. Companies that operate internationally can i) earn a greater…

Unique competencies are defined as “unique strengths that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness.” Such strengths are typified by…

Location advantages are those that occur from performing a value creation activity in the most advantageous location for that activity- in whichever part of the…

Experience curve refers to the systematic decrease in production costs that occur over the life of a product. Learning effects and economies of scale lie…

Companies that compete globally generally face two types of competitive pressures: pressures for cost reductions and pressures to be locally responsive. International companies must cope…

Pressures for local responsiveness crop up due to differences in consumers’ tastes and preferences, differences in infrastructure, differences in distribution channels, and the demands of…

Each of these strategies has its advantages and disadvantages. International Strategy Companies that pursue an international strategy create value by transferring valuable skills and products to…

There are five main modes of entering a foreign market: exporting, licensing, franchising, entering into a joint venture with a host country company, and setting…

Licensing is an arrangement by which a foreign licensee buys the rights to produce a company’s product in the licensee’s country for a negotiated fee….