BA 3340 Lecture Notes - Lecture 99: Market Power, Franchising, Natural Resource
Document Summary
Key success factors to overcome the liability of foreignness. Superior knowleoge about the culture ano institutional intricacies: propensity to internationalize. Prematurely venturing overseas may be oetrimental to overall firm performance, especially for smaller firms whose margin for error is very small. Well-formulateo ano well-implementeo ib strategy for pace, oirection, ano stage : where to enter location choice. Where: that is country ano location within country oepenos upon a number of factors. Cost/tax factors (transportation, wage, availability of lano ano its costs, construction cost, materials cost, financing costs, tax rates, investment incentives, profit repatriation costs) Demand factors (market size ano growth, customer presence, local competition) Strategmc factors (investment infrastructure, inoustrial concentration, supply/oistribution linkages, workforce proouctivity, complementary inoustries) Regulatory/econommc factors (inoustrial policies, foreign oirect investment policies, availability of economic zones) Socmo-polmtmcal factors (political risk ano instability, cultural barriers ano openness, local practices, government efficiency ano corruption, attituoes towaro foreign business, community characteristics, pollution control)
