1. International Environment
The international environment is of increasing
concern to companies around the world
because it is both a major opportunity
and a major threat.
Threat exists in the presence of
international forces that increase uncertainty.
Opportunity exists in the huge new
markets and resource pools abroad.

2. Choosing a Strategy The three factors that influence the choice
of strategy for global expansion are:
Pressures for global integration
Pressures for local responsiveness
Bureaucratic costs

3. Multidomestic Strategy
Responds to local pressures and customizes products to suit the needs of customers in each country
Manufacturing, R&D, marketing abroad
Achieve a differentiation advantage
Bureaucratic costs are lowest

4. International Strategy
Offers customers in all countries a standardized product and allows foreign
divisions to adapt products to local
preferences only slightly
Manufacturing abroad
R&D and marketing at home
Bureaucratic costs are low

5. Global Strategy
Organization reduces production costs so that it can offer foreign consumers less expensive products than their domestic companies offer
Manufacturing at a few low-cost locations,
R&D and marketing at home
Bureaucratic costs are high

6. Transnational Strategy—
Simultaneously achieves the advantages of both a global strategy and a multidomestic strategy.
Manufacturing, R&D, marketing abroad
Emphasis on global learning / cost reduction
Bureaucratic costs are highest

7. Understanding Regional Cultures
Discuss in small groups led by non-American students:
How are Americans seen abroad?
What values or beliefs affect behavior in your culture?
Consider:
Class/status
Environment
Ethnic ties
Governmental issues
Religion