International Strategic Management And International Strategy

1872 Words Oct 31st, 2014 8 Pages
First, let’s start with what International Strategy is. According to Hoskisson, Hitt, Ireland, and Harrison (2013), international strategy can be defined as, “a strategy through which the firm sells its goods or services outside its domestic market” (p. 286). Eden, Dai and Li (2010) take the definition of strategic management and combine it to the meaning of international management to create another simple definition for international strategy, “international strategic management is the comprehensive set of commitments, decisions, and actions by firms to gain competitiveness internationally” (p. 61). Companies are not going to enter the international market for just any reason, there are specific incentives for firms to use international strategy, including; increased market size, return on investment, economies of scale, and competitive advantage. Twarowska and Kakol (2013) posit that “companies go international for a variety of reasons but the typical goal is company growth or expansion” (p. 1006). Once a company has grown so large in the United States that they control most of the market, they start looking to other countries so that they can increase even more. More and more markets are emerging, with population growing in countries such as China and India. Helen Deresky (1994) lists several countries that are developing such as; Singapore, Hong Kong and Brazil, among many others (p. 8). However, while companies may be eager to expand to other countries with emerging…
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