Global Strategy
•Products are standardized across national markets.
•Business-level strategic decisions are centralized in the
home office.
Transnational Strategy
•Seeks to achieve both global efficiency and local
responsiveness.
•Difficult to achieve because of simultaneous
requirements for:
Environmental Trends
•Liability of Foreignness
Environmental Trends
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Choice of International Mode of Entry
only in distribution.
What’s the best solution?
Choice of International Mode of Entry
necessary to enter
foreign markets.
What’s the best solution?
Choice of International Mode of Entry
Situation Optimal Solution
of costs.
What’s the best solution?
Choice of International Mode of Entry
uncertain situations
such as an emerging
economy in its targeted
market.
What’s the best solution?
Choice of International Mode of Entry
cross-border access to
new international
markets
What’s the best solution?
Choice of International Mode of Entry
emerging economy are
not well protected, the
number of firms in the
industry is growing fast,
and the need for global
integration is high.
What’s the best solution?
Risks in an International Environment
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8–27
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International Diversification and Returns
•Expanding sales of goods or services across
International Diversification
and Innovation
•Expansion sales of goods or services across
Complexity of Managing Multinational Firms
•Expansion into global operations in different
geographic locations or markets:
Limits to International Expansion
•Management Problems