Competition is increasingly global

Competition is increasingly global - The ability to...

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? The ability to coordinate and control processes in transnational production networks The ability to capitalize on geographic differences in factors of production The ability to switch resources and operation between locations Why Become a Multinational Corporation? Competition is increasingly global Firms now compete with global rivals Competition is increasingly volatile Competitive advantages of companies appear and disappear very rapidly Why Become a Multinational Corporation? Who has the advantage in a foreign market? How can a company overcome its disadvantages? Why try and enter a foreign market at all? Why Become a Multinational Corporation? Ownership-Specific Advantages Assets a firm controls that other firms do not have Location-Specific Advantages Local factors that make it profitable for a firm to use its assets at that location Internalization To maintain control and maximize the profit of a transaction a firm will keep their transactions within the firm Why Become a Multinational Corporation? Market Orientation A company wants to sell their goods/services in a foreign market Size of the market
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Structure of the market Accessibility of the market Why Become a Multinational Corporation? Market Size What is more important population of per capita income? Market Structure What will different types of people spend their money on? Market Accessibility How difficult is it for a foreign firm to operate in a foreign country?
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  • Spring '11
  • LuizPereira
  • Globalization, Corporation, new organizational structures, global functional structure

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