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Internationalization: Are we in or out?. Opportunities and risks when firms diversify abroad Trade across nations > trade within nations Rise of market capitalism around the world Economies of East Asia have grown rapidly Poor education levels
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Internationalization: Are we in or out?
Opportunities and risks when firms diversify abroad Trade across nations > trade within nations Rise of market capitalism around the world Economies of East Asia have grown rapidly Poor education levels Failure to manage broader economic factors in some countries The Global Economy: A Brief Overview
Why do companies turn to international expansion? International Expansion
Political and economic risk Social unrest Military turmoil Demonstrations Violent conflicts and terrorism Laws and their enforcement Potential Risks of International Expansion
The 2006 Transparency International Corruption Perceptions Index (CPI) The five most corrupt countries are Haiti (CPI Score: 1.8) Myanmar (CPI Score: 1.9) Iraq (CPI Score: 1.9) Guinea (CPI Score: 1.9) Sudan (CPI Score: 2.0) Effect of Corruption Source: Transparency International, 2006, www.transparency.org
Risk Rankings Exhibit 7.3 A Sample of International Country Risk Rankings Source: Adapted from worldbank.org/html/prddr/trans/so96/art7.htm.
Continuum of Radical and Incremental Innovations Exhibit 12.1 Continuum of Radical and Incremental Innovations
Entry Modes of International Expansion Adapted from Exhibit 7.10 Entry Modes for International Expansion
Media Accuracy • There is no such thing as accurate media!!!