Culture & Strategy - Alphabet Games

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International Business Chapter 1 What is international Business Key Concepts In International Business * International Trade - describes the exchange of products and services across national borders * Exchanges can be made through exporting or can also take the form of: * Importing or Global Sourcing - the procurement of products or services from suppliers located abroad for consumption in the home country or a third country. * International Investment - refers to the transfer of assets to another country or the acquisition of assets in that country. Economists refer to such assets as factors of production and they include capital, technology, managerial talent and manufacturing infrastructure. * Foreign…show more content…
* Multinational Enterprise - A large company with substantial resources that perform various business activities through a network of subsidiaries and affiliates located in multiple countries. They carry out research and development procurement, manufacturing and marketing activities wherever in the world the firm can reap the most advantages. Typical MNE's include Barclays, Disney and Samsung etc * Small and Medium Sized Enterprise - A company with 500 or fewer employees. They tend to have limited managerial and other resources and primarily use exporting to expand internationally. Why Do Firms Internationalise There are multiple motives for international expansion. Some are strategic while others are reactive. An example of a strategic or proactive motive is to tap foreign market opportunities or acquire new knowledge. An example of a reactive motive is the need to serve a key customer that has expanded abroad. Nine Specific Motivations Include: 1. Seek opportunities for growth through market diversification 2. Earn higher margins and profits 3. Gain new ideas about products, services and business methods 4. Better serve key customers that have relocated abroad 5. Be closer to supply sources, benefit from global sourcing advantages or gain flexibility in product sourcing. 6. Gain access to lower-cost or better-value factors of production 7. Develop economies of scale in
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