Entry and Expansion

International Management Successful international managers tend to: Be active Be aggressive Display a high degree of international orientation Managerial commitment is critical because foreign market penetration requires a vast amount of market development activity, sensitivity toward foreign environments, research, and innovation.

To Develop International Commitment Become aware of international business opportunities.

Motivations for Going International Profit advantage Unique products Technological advantage Tax benefit Economies of scale

Psychological Distance Sometimes cultural variables, legal factors, and other societal norms make a foreign market that is geographically close seem psychologically distant. Major issue of psychological distance are: Some of the distance seen by firms is based on perception rather than reality.

International Entry Strategies Exporting Importing Licensing Franchising Foreign Direct Investment Interfirm Cooperation