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Chapter 5 Overview
.
In this chapter, the economic rationale for international business activity is
examined. It explains why trade take place, and what are the gains from trade
and investment.
The focus is on why firms and nations trade and invest internationally and
how firms acquire and sustain competitive advantages in the global
marketplace.
Finally, it describes the leading theories of why firms pursue internationalization
strategies as exporting, importing, investing, franchising, or licensing
Chapter 5 Goals and Student Learning
Outcomes
.
In this chapter, we expect to review basic models and theories, and to learn
a technical language related to the ongoing internationalization process of
nations and firms in the global market. To achieve this purpose, let's go to
the Chapter 5 Goals and Student Learning Outcomes
.
Course Goals (Objectives)
.
The students will learn basic explanations and models about why and
how nations and companies go international and sustain competitive
advantages internationally. The specific objectives of this chapter are:
.
1 Explain why nations trade.
2 Learn about how nations can enhance their competitive advantage.
3 Understand why and how firms internationalize.
4 Explain the strategies internationalizing firms use to gain and
sustain competitive advantage.
.
Student Learning Outcomes
.
When asked to explain the relational of the international of nations and
business, students will be able to:
• Elaborate on the main explanations developed by scholars over the
time about the internationalization of nations and firms.
• Speak about the main models that elucidates how nations and firms
achieve and sustain competitive advantages in evolving international
markets.
• Evaluate the impact of challenging global markets and how develop
strategies to gain and sustain a competitive position in the global
market.
Why nations trade?
Basic concepts
• Comparative advantage
•
o Superior features of a country that provide it with unique benefits in global
competition.
o The way how nations can achieve and sustain economic success and
prosperity.
