International Business: Strategy and Organization in the International Firm

3.) How should the company decide on opportunities for entering new international markets? How much emphasis should be placed on this strategy?

Global company : An organization that attempts to standardize and integrate operations worldwide in all functional areas.

Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large

Transnational organizations also have flexible and ever-changing structures. Their managers incorporate innovation and strategies for the corporation as a whole. Unification and coordination goals are achieved by corporate culture, shared values, vision, and management style. It offers a high level of differentiation, while ensuring that a global organization can coordinate activities and transfer knowledge across various functional areas and geographies (Daft, 2010).

Hill, C. (2011). International business, competing in the global marketplace. (8 ed.). New York, NY: McGraw-Hill Irwin.

1) A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products.

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

If both of these countries were given resources to produce both oil and cars it would be a waste for both the countries therefore by trading with each other, Japan and Saudi Arabia employ their respective resources efficiently by mutually benefiting from each other’s relationship. Japan gets oil that it needs to power its cars, and Saudi Arabia gets the cars that its citizen needs. Thus products that countries produce and with which they can trade freely with others countries and can achieve substantial gains from trade and can result in improving national living standards.

Domestic Business: Is the one that acquires all of its resources and sells all of

Question No.1: The freedom in the world survey evaluates the state of political rights and civil liberties around the world. Provide a description of this survey and a “ freedom” ranking of the leaders and laggards of the world. What factors does this survey consider when forming the ranking?

Founded in 1975, Microsoft is a “global competitor”, that is, a global corporation following a unified strategy to coordinate many national operations (Porter, 2011); is the oldest major producer of software for personal computers (PCs) and the world 's largest software company with a strong, leading market share for its core products that make up over 80% of its revenue (Moody 's, 2013).

International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.

A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter (Porter, 2013)

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).