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Essay

Strategy

Essay specific features

 

Issue:

Business

 

Written by:

Deborah M

 

Date added:

March 9, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 297

 

Was viewed:

1977 times

 

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Essay content:

An international strategy results in international diversification. Firms pursue an international strategy to seek new opportunities to create value in international markets. The primary reasons firms pursue international diversification is to: • Increase market size • Increase return on investment • Seek economies of scale, scope, and learning • Obtain resources and achieve other location advantages Firms that pursue an international strategy must decide whether to compete in all or many global markets, or to focus on a particular region...
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Competing in all markets provides the potential for economies because of the combined market size. Also, firms may be influenced to expand their global reach because competing in emerging markets can lead to higher performance. However, a firm that competes in industries in which the international markets differ greatly may wish to narrow its scope because of the liability of foreignness...
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