To respond to the rising intensity of global competition, business firms are making a variety of organizational changes. The cross-border responses that companies develop to the threats and opportunities in the international economy are diverse and complex.
This volume examines in detail the different ways that companies establish a presence in overseas markets. It describes the advantages and disadvantages of various methods of operating abroad and summarizes the considerations businesses typically explore before expanding internationally.
Chapter 1 places the analysis in the context of the globalization of the world economy and the growing trend for nations to form regional trading blocs. The specific methods employed by firms operating in the international environment can be classified in four general categories: (1) marketing abroad directly, (2) establishing cooperative contractual relationships with foreign companies, (3) operating wholly owned facilities in other nations, and (4) entering into strategic alliances.
Chapter 2 describes the direct methods of entering foreign markets without actually establishing local production facilities. The two most common ways are exporting directly to the targeted markets and engaging in turnkey opera