Globalization

Globalization - Globalization Intro 2/15/2008 10:40:00 AM...

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Globalization 15/02/2008 13:40:00 Intro Firm is diversified if they are involved in many markets Vertical integration o When you produce the different levels of a product  Cultivate or mine Process Manufacture Produce market and sell o When you own all or part of it o Value-chain: Firms are going to China, make a plant, then integrating  up stream to make the product more cheaply Dimensions of Corporate Strategy Vertical Integration vs. diversification, vs. geographic global expansion Goals of corporate Global Strategy Looking for advantages to earn higher returns The Better-off Test o Presence in geographic market improves at least one business unit’s  performance The Ownership Test o Ownership of foreign unit produces greater advantage than contracting One might want to buy from a monopolist that is gouging prices  for contracts
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This note was uploaded on 04/24/2008 for the course BUAD 100x taught by Professor Gilligan during the Spring '08 term at USC.

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Globalization - Globalization Intro 2/15/2008 10:40:00 AM...

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