College of Business

1
Levels of International Business Activity
Domestic International Multinational
Global Business Business Corporation
Business
Low High
Level of International Activity
2
Types of International Activity
A. Market Entry Strategies 1. Global
Sourcing 2. Exporting/Importing 3.
Licensing/Franchising
3
Types of International Activity continued
B. Direct Investment Strategies 1. Joint
Venture 2. Wholly-owned Subsidiaries 3.
Greenfield Venture
4
Philosophies of International Mgmt
Ethnocentric Polycentric Geocentric
5
International Issues and Contingency Theory
Intnl Political Factors
Intnl Economic Factors
Intnl Socio-cultural Factors
Intnl Technological Factors
6
International Socio-Cultural Factors
Differences in Perceptions of Time Differences
in Perceptions of Space Language
Differences Differences in Values Beliefs
7
Hofstedes National Value Systems
Power Distance Uncertainty Avoidance Individuali
sm/Collectivism Masculinity/Femininity Long-term
/Short-term
8
Examples of Hofstedes work
Country PD UA I M LT
U.S. L L H H
L Germany L M H H
M Japan M H M H
H France H H H M
L Netherlands L M H
L M Hong Kong H L L
H H Indonesia H L
L M L West Africa H M
L M L Russia H
H M L L China H
M L M H
9
The World is Flat
Flattener 1 The Fall of the Berlin
Wall Flattener 2 Netscape Goes
Public Flattener 3 Work Flow
Software Flattener 4 Open Sourcing Flattener
5 Outsourcing
10
Flatteners continued
Flattener 6 Offshoring Flattener 7 Supply
Chaining Flattener 8 Insourcing Flattener
9 In-forming Flattener 10 The Steroids