chapter 2 Flashcards
The fundamental reasons - proactive and reactive- for internationalization
Internationalization motives
Four main motives to internationalize (4)
- Market seeking
- Efficiency seeking
- Resource-seeking
- Strategic asset-seeking
Proactive motives (6)
- Profit and growth goals
- Managerial urge
- Technology competence / unique product
- Foreign market opportunities
- Economies of scale
- Tax benefits
Reactive motives (6)
- Competitive pressures
- Domestic market small and saturated
- Overproduction/ excess capacity
- Unsolicited foreign orders
- Extend sales of seasonal products
- Proximity to international customers / psychological distance
Manager’s commitment and motivation that reflect the desire and enthusiasm to drive internationalization forward
Managerial urge
Internal or external events taking place to initiate internationalization
Internationalization triggers
Internal triggers (3)
- Perceptive management
- Specific internal event
- Importing as inward internationalization
External triggers (5)
- Market demand
- Network partners
- Competing firms
- Trade associations and other outside experts
- Financing
Imports (inwards) as a preceding activity for the later market entries (outward) in foreign markets
Inward / outward internationalization
A process, determined by internal and external factors, where the multi-national company shifts to a strategic configuration that has a lower international presence
De-internationalization
GRAPH
interdependence between markets vs. (de) internationalization
- Low interdep & de internat
- High interdep & de internat
- Low inderdep & internation
- High interdep & internation
- Individual withdrawal
- Multiple withdrawal
- Multi-domestic
- Global strategy
