Create your own awesome maps

Even on the go

with our free apps for iPhone, iPad and Android

Get Started

Already have an account?
Log In

Chapter 2: Understanding the International Context: Responding to Conflicting Environmental Forces by Mind Map: Chapter 2: Understanding the International
Context: Responding to Conflicting
Environmental Forces
0.0 stars - 0 reviews range from 0 to 5

Chapter 2: Understanding the International Context: Responding to Conflicting Environmental Forces

Forces for Global Integration and Coordination

Economies of Scale

Economies of Scope

Factor Costs

Liberalization of World Trade

Global Competitors as Change Agents

Standardize products, packaging and labels to allow your product to be efficiently produced in one area of the world but sold EVERYWHERE, giving you significant advantage over purely local firms

Global Chess/ Cross-subsidizaition of markets

Forces for Local Differentiation and Responsiveness

Cultural Differences

Government Demands

Love-Hate Relationship, Love, MNE gives host government funds, technology and expertise, Government is key to local market and resources for MNE, Hate, MNE wants, Unrestricted Access to Resources and Markets, Freedom to integrate manufacturing and other operations across national boundaries, The right to coordinate and control all aspects of the company throughout the world, Host Government wants, Develop an an economy that can survive and prosper in a competitive international environment

New Trend, Cash-rich governments like China invest in foreign resources through government owned companies

Growing Pressures for Localization

Despite Globalization, people still have different demands in different countries

Advantage for company that is sensitive and responsive to local requirements

Centralization to achieve economies of scale often not cost effective, Costs higher than initially expected!

Forces for Worldwide Innovation and Learning

Advantage for companies that can acquire and use information and expertise around the globe most efficiently and produce innovations on a worldwide basis

Newest trends might emerge in Japan or Italy, companies need to broaden their focus outside their home market

Responding to the Diverse Forces Simultaneously

Global Industries

Economic Forces of Globalization are dominant

Capitalize on highly centralized, scale-intensive manufacturing and R&D operations and use them in worldwide exports of standardized products

Multinational Industries

Multiple national industry structure

Exploits the differences between cultures by having strong and resourceful national subsidiaries

International Industries

Innovate and exploit the life cycle of your products by transferring new found technology to overseas

Innovate and create new product in home market and then distribute it to foreign affiliates

Transnational Industry

Global, Multinational and International traits are needed