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Week 5 ISM Spring2011 - International Strategic Management...

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1 International Strategic Management Week 5 DR PAULA TOMSETT This week Revision Video Chapter 5: Foreign Market Entries PechaKucha presentations: Zach, Claudel, Pink, Withz, and Léonel Case 1.2 (pg 133-138) AGRANA fruit, sugar & starch! 2 Chapter 5 Foreign Market Entry 3 Overcoming the Liability of Foreignness The Liability of Foreignness - the inherent disadvantage foreign firms experience in host countries because of their non-native status Differences in formal and informal institutions govern the rules of the game in different countries Foreign firms are often discriminated against Foreign firms deploy overwhelming resources and capabilities to offset the liability of foreignness 4 Understanding the Propensity to Internationalize The underlying factors The size of the firm The size of the domestic market The propensity Enthusiastic internationalizer Follower internationalizer Slow internationalizer Occasional internationalizer 5 Firm Size, Domestic Market Size, and Propensity to Internationalize Fig.5.1 6
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