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Strategic Management: Strategic Managment
Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

International Strategy: Creating Value in Global Markets

Chapter Objectives

Chapter 7

After reading this chapter, you should have a good understanding of:
  • The importance of international expansion as a viable diversification strategy.
  • 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.
  • The motivations (or benefits) and the risks associated with international expansion.
  • The two opposing forces—cost reduction and adaptation to local markets—that firms face when entering international markets.
  • The advantages and disadvantages associated with each of the three basic international strategies: global, multidomestic, and transnational.
  • The four basic types of entry strategies and the relative benefits and risks associated with each of them.