Internationalization: Are we in or out?. 7 - 2 The Global Economy: A Brief Overview Opportunities and risks when firms diversify abroad -Trade across.

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Presentation transcript:

Internationalization: Are we in or out?

7 - 2 The Global Economy: A Brief Overview Opportunities and risks when firms diversify abroad -Trade across nations > 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

7 - 3 International Expansion Why do companies turn to international expansion?

7 - 4 Potential Risks of International Expansion Political and economic risk -Social unrest -Military turmoil -Demonstrations -Violent conflicts and terrorism -Laws and their enforcement

7 - 5 Effect of Corruption The 2006 Transparency International Corruption Perceptions Index (CPI) The five most corrupt countries are 1.Haiti (CPI Score: 1.8) 2.Myanmar (CPI Score: 1.9) 3.Iraq (CPI Score: 1.9) 4.Guinea (CPI Score: 1.9) 5.Sudan (CPI Score: 2.0) Source: Transparency International, 2006,

7 - 6 Risk Rankings Exhibit 7.3 A Sample of International Country Risk Rankings Source: Adapted from worldbank.org/html/prddr/trans/so96/art7.htm.

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7 - 8 Continuum of Radical and Incremental Innovations Exhibit 12.1 Continuum of Radical and Incremental Innovations

7 - 9 Entry Modes of International Expansion Adapted from Exhibit 7.10 Entry Modes for International Expansion

Media Accuracy There is no such thing as accurate media!!!

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