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- What incentives influence firms to use international strategies? What are the three basic benefits firms can gain by successfully implementing an international strategy? Why?
- Determine why, given the advantages of international diversification, some firms choose not to expand internationally. Provide specific examples to support your response.
- As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response.
A firm uses these incentives to be influenced to use international strategies:
Extend a product’s life cycle
Gain easier access to raw materials
Opportunities to integrate operations on a global scale
Opportunities to better us rapidly developing technologies
Gain access to consumers in emerging markets
Basic benefits firms can gain by implementing this strategy includes:
Increased market size
Economies of scale and learning
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