International management phatak ebook

Market Seeking Motives :Theory of Comparative Advantage When a country specializes in some products, it may not produce other products, so trade between countries is essential. This is the argument made by the classical theory of comparative advantage. Comparative advantages allow firms to penetrate foreign markets. Market Seeking Motives : Imperfect Markets Theory If each countrys markets were closed from all other countries, there would be no international business.

At the other extreme, if markets were perfect so that the factors of production such as labor were easily transferable, then labor and other resources would flow wherever they were in demand. Market Seeking Motives : Imperfect Markets Theory The unrestricted mobility of factors would create equality in costs and returns and remove the comparative cost advantage, the rationale for international trade and investment.

The real world suffers from imperfect market conditions where factors of production are somewhat immobile. Imperfect markets provide an incentive for firms to seek out foreign opportunities. Market Seeking Motives : Product Cycle Theory A firm is likely to establish itself first in its home country a result of some perceived advantage over existing competitors. Foreign demand for the firms product will initially be accommodated by exporting.

Cost Reduction Motives: Venture overseas for cost reduction Cheap labor is the strongest incentive Eliminate or reduce high transportation cost Favorable host govt incentives and inducements Allocate funds for research to ;look foreign markets.

Strategic Motives: Follow major customers: Bandwagon Effect when firms venture abroad to follow their major competitors Cross-subsidisation: Using profits generated in one market to compete in another market. Achieving efficiency Benefiting from in current operations differences in factor costs wages and cost of capital. Managing different kinds of risks arising from market or policyinduced changes in comparative advantage of different countries.

Strategic Objectives Innovation, learning, and adapting. National Differences Learning from societal differences in organizational and managerial processes and systems. Scope Economies Sharing learning across organizational components in different products, markets, or businesses.

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Search inside document. A 1. International Mindsets contd. Expanding and exploiting potential scale economies in each activity.

Sharing investments and costs across products, markets, and businesses. Managing risks Balancing scale with strategic and operational flexibility. Portfolio diversification of risks and creation of options and side-bets. Scale Economies Benefiting from experience cost reduction and innovation.

Sources of Competitive Advantage Scope Economies Sharing learning across organizational components in different products, markets, or businesses. Documents Similar To Soumya Ranjan. Sin city: 6 pdf - Frank Miller scaricare il libro. Als een man boek. Kunst und Meditationen zum Sonnengesang buch. Baixar Nura. Boek Democratie in relatie tot recht en politiek Twan Tak pdf. Boek Tigana Guy Gavriel Kay pdf. Bog Kaj Munk. Bok Digital demens Manfred Spitzer pdf. Buch Bildrekonstruktion in der digitalen inline-holografischen Mikroskopie - Mario Kanka.

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