Internationalization:

1
Internationalization Are we in or out?
2
The Global Economy A Brief Overview

• Opportunities and risks when firms diversify
  abroad
• Trade across nations gt trade within nations
• Rise of market capitalism around the world
• Economies of East Asia have grown rapidly
• Poor education levels
• Failure to manage broader economic factors in
  some countries

3
International Expansion

• Why do companies turn to international expansion?

4
Potential Risks of International Expansion

• Political and economic risk
• Social unrest
• Military turmoil
• Demonstrations
• Violent conflicts and terrorism
• Laws and their enforcement

5
Effect of Corruption

• The 2006 Transparency International Corruption
  Perceptions Index (CPI)
• The five most corrupt countries are
• Haiti (CPI Score 1.8)
• Myanmar (CPI Score 1.9)
• Iraq (CPI Score 1.9)
• Guinea (CPI Score 1.9)
• Sudan (CPI Score 2.0)

Source Transparency International, 2006,
www.transparency.org
6
Risk Rankings
Exhibit 7.3 A Sample of International Country
Risk Rankings Source Adapted from
worldbank.org/html/prddr/trans/so96/art7.htm.
7
(No Transcript)
8
Continuum of Radical and Incremental Innovations
Exhibit 12.1 Continuum of Radical and Incremental
Innovations
9
Entry Modes of International Expansion
Adapted from Exhibit 7.10 Entry Modes for
International Expansion
10
Media Accuracy

• There is no such thing as accurate media!!!

11
(No Transcript)
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)