MGCR 293 Lecture 10: Final Terms
24 Apr 2016
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Document Summary
Seeking markets a firm might seek to internationalize in order to reach new customers and expand its sales volume. Seeking resources a firm might seek to internationalize in order to acquire access to unique or low-cost resources it needs to operate. Reducing risk a firm might seek to internationalize in order to reduce its exposure to risk in one country, i. e. through geographic diversification. Differentiating (as a reason for internationalization) to pursue internationalization in order to increase willingness to pay. Economies of scale cost advantaged that a firm can obtains due to its sales volume. This means that the cost per unit declines because fixed costs are spread over more units. Bargaining power cost advantages that a firm can obtain due to its ability to negotiate with its exchange partners (customers, distributors, etc. ) First-mover advantage a competitive advantage a firm derives from being the first to enter a market. Cultural distance distance between countries with respect to cultures, tastes, values.
