After reading this chapter, you should have a good understanding of the following learning objectives:
LO 7.1 | The importance of international expansion as a viable diversification strategy. |
LO 7.2 | The sources of national advantage; that is, why an industry in a given country is more (or less) successful than the same industry in another country. |
LO 7.3 | The motivations (or benefits) and the risks associated with international expansion, including the emerging trend for greater offshoring and outsourcing activity. |
LO 7.4 | The two opposing forces—cost reduction and adaptation to local markets—that firms face when entering international markets. |
LO 7.5 | The advantages and disadvantages associated with each of the four basic strategies: international, global, multidomestic, and transnational. |
LO 7.6 | The difference between regional companies and truly global companies. |
LO 7.7 | The four basic types of entry strategies and the relative benefits and risks associated with each of them. |