In which of the following international strategies are strategic and operating decisions decentralized?

CHAPTER8INTERNATIONALSTRATEGYInstructor/Professor: Dr. LidiaVarbanova

Learning Objectives● Explainincentivesthat can influence firms touse an international strategy.● Explainincentivesthat can influence firms touse an international strategy.● Identify three basicbenefitsfirms achieve bysuccessfully implementing an internationalstrategy.● Identify three basicbenefitsfirms achieve bysuccessfully implementing an internationalstrategy.● Explore the determinants ofnationaladvantageas the basis for internationalbusiness-level strategies.● Explore the determinants ofnationaladvantageas the basis for internationalbusiness-level strategies.● Describe thethree internationalcorporate-level strategies.● Describe thethree internationalcorporate-level strategies.● Discussenvironmental trendsaffecting thechoice of international strategies, particularlyinternational corporate-level strategies.● Discussenvironmental trendsaffecting thechoice of international strategies, particularlyinternational corporate-level strategies.

Learning Objectives● Explain thefive modes of entryfirmsconsider when deciding how to enterinternational markets● Explain thefive modes of entryfirmsconsider when deciding how to enterinternational markets● Discuss theeconomic and political risksofusing international strategies.● Discuss theeconomic and political risksofusing international strategies.● Discuss thestrategic competitivenessoutcomesassociated with internationalstrategies particularly with an internationaldiversification strategy.● Discuss thestrategic competitivenessoutcomesassociated with internationalstrategies particularly with an internationaldiversification strategy.● Explain two important issues firms shouldhaveknowledgeabout when usinginternational strategies.● Explain two important issues firms shouldhaveknowledgeabout when usinginternational strategies.

CORE LOGIC OF THE CHAPTER:OPPORTUNITIES AND OUTCOMES OFINTERNATIONAL STRATEGY©Copyrighted 2011 Michael A. Hitt, R. Duane Ireland and Robert E.Hoskisson

Introduction: Domestic versusGlobal Markets•Stable•Predictable•Less complex•Globalization isreducing thenumber of domestic-only marketsDOMESTICMARKETS•Unstable•Unpredictable•Complex and risky•Globalization isenabling globalmarketsGLOBALMARKETS

I.Identifying InternationalOpportunitiesInternational Strategy:a strategy through whichthe firm sells its goods or services outside itsdomestic market.Reasonsfor international strategy:•International markets yield new opportunities•Needed resources can be secured•Greater potential product demand•Borderless demand for globally branded products•Pressure for global integration•New market expansion extends product life cycleMany firms choosedirect investment in assets overindirect investmentbecause it:● Provides better protection for assets● Develops relationships with key resources faster● May provide reduction in risk due to direct

Incentives and Basic Benefits of

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