Rational for Going Global

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Presentation transcript:

Rational for Going Global

Why go Global? Capturing New Markets Diversification Cost Advantages GDP as Share of World GDP Diversification Cost Advantages  Economies of Scale  Economies of Scope  Global Sourcing  Brand Name Leverage

Why go Global Taking Advantage of Differences in Laws and Regulations  Labor Cost Cost to Protect Workers Cost to Protect Environment Taxes Customs (duties levied by Government on imported goods)

Why go Global Learning, Transfer of Knowledge - Leading Markets Homogenization of Consumer Needs Modern Telecommunication Technology Global Customer Global Linkages - Competition First Mover (Dis)Advantage

2. How? Which Country? Which Products/Brands/Services? - Which Mode of Entry? - Which Strategy?