MGCR 382 Lecture Notes - Lecture 8: Network Effect, Bauxite, Vertical Integration
Document Summary
All commercial transactions that occur between 2+ countries. An international business transaction differs from domestic business because it generally involves: 2+ different sets of laws, 2+ different cultures, more than one currency. Intra corporate transfers: company a in country 1 sells to an affiliated company to company a in country 2. For ib strategy, various types of distance matter. Degree of distance = degree of difference between 2+ countries. Degree of integration influence type of ib strategy. Ib strategy aims to create a sustained competitive advantage in a world characterized by varying degrees of distance/differences. Things having to do with differences in values, beliefs, ethics, norms, languages, religion, social networks. Things having to do with differences in laws, regulations, politics, trading blocs of membership in international organizations. Things having to do with differences in physical distance, common borders, time zones, natural physical environment, infrastructure, population.
