MGC2120 Lecture Notes - Lecture 8: Global Entry, Downside Risk, Organizational Learning
29 Sep 2018
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Week 8: entering foreign markets: global expansion, profitability & profit growth. Firms that operate internationally are able to: market & sell its products in a number of countries larger market opportunities. + locate its product or business activities in different locations all over the world. This knowledge can be transfer from 1 location to another location. + realise greater cost economies from: strategic objectives. Natural resource seeking: when firms expand their business to get access to natural resources. Market seeking: when firms want to expand market opportunities in international market. Efficiency seeking: when firms want to improve performance to reduce cost of production. Innovation seeking: when firms want to improve innovation capability of the firms: quality & costs of natural resources, strong market demand & customers willing to pay. Innovation seeking seeking: economies of scale, low cost work force & suppliers, scale of entry, agglomerat- ion & innovation. + commit huge amount of resources to the.
