Motives for Globalization

Motives for Globalization - MOR 492 Global Strategy MOR 492...

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Unformatted text preview: MOR 492 Global Strategy MOR 492 Global Strategy Motives for Motives for Globalization Globalization 1 Motives for Motives for Global Global Expansion: Expansion: Pushes and Pulls to Pushes and Pulls to Internationalize Internationalize MOR 492 Global Strategy MOR 492 Global Strategy Motives for Motives for Globalization Globalization 2 What is a Global What is a Global Industry Industry A global industry as one where companies ship output worldwide typically from a small number of locations A global industry as one where companies locate activities in several different locations (such as building plants in several locations) A global industry as one where companies, regardless of how globally their output are disseminated, rely on factor inputs from around the world A global industry as one where it pays to configure and coordinate activities worldwide MOR 492 Global Strategy MOR 492 Global Strategy Motives for Motives for Globalization Globalization 3 Traditional Motives Traditional Motives Use underemployed resources Use underemployed resources New Markets Growth Imperative New Markets Growth Imperative Offset domestic market maturity Offset domestic market maturity Secure key supplies Secure key supplies Access low cost factors e.g., labor Access low cost factors e.g., labor Benefit from government investment Benefit from government investment subsidies subsidies Use old technologies Use old technologies MOR 492 Global Strategy MOR 492 Global Strategy Motives for Motives for Globalization Globalization 4 New and Emerging New and Emerging Motives Motives Increasing minimum efficient scale Protect domestic markets - preemptive competitive strategies Seek knowledge / leverage learning Escalating R&D costs; shorter product life cycles Globalization of customers Globalization of competitors MOR 492 Global Strategy...
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Motives for Globalization - MOR 492 Global Strategy MOR 492...

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