Decision to Internationalize/Globalize
Traditional Motivations:
_ Secure key suppliers
_ Market seeking behavior
_ To access low-cost factors of production
Emergent and Contemporary Motivations:
_ Increasing scale economies
_ Ballooning R&D investments
_ Shortening product life cycles
_ Scanning and learning capability
_ Competitive positioning
The Pre-requisites for Internationalization:
Range of Mentalities:
Multinationals (MNCs)
_ Sovereignty
_ Political Risk
_ Economic Risk
_Complexity in terms of its product, functional and geographic diversity.
International Evironments
Economy of Scale
Economy of Scope
Factor Costs
Differentiating Factors: Language, Religion, Power, Femininity vs. Masculinity, Materialism vs. Spiritualism
Modes of Learning
Forms of Government: Monarchy, Republic, Presidential, Parliamentary, Military Juntas, Theocracy, Communism, Socialism, etc.
Political Risk: Macro vs. Micro, Legal vs. Extra-legal
Other Issues: