Chapter Ten Powerpoint Presentation

  • Published on

  • View

  • Download

Embed Size (px)


<ul><li> 1. Chapter 10 Learning Objectives <ul><li>After studying this chapter, you should be able to: </li></ul></li></ul> <ul><li>Understand how institutions and resources affect liability of foreignness</li></ul> <ul><li>Match the quest for location-specific advantages with strategic goals ( whereto enter) </li></ul> <ul><li>Compare and contrast first- and late-mover advantages ( whento enter) </li></ul> <ul><li>Follow the comprehensive model of foreign market entries ( howto enter) </li></ul> <ul><li>Participate in three leading debates on foreign market entries </li></ul> <ul><li>Draw implications for action </li></ul> <p> 2. LIABILITY OF FOREIGNNESS </p> <ul><li>theinherentdisadvantage foreign firms experience in host countries because of their nonnative status </li></ul> <ul><li>differences in formal and informal institutions governing the rules of the game in different countries </li></ul> <ul><li>local firms are already well versed in these rules, but foreign firms have to learn the rules quickly </li></ul> <ul><li>foreign firms are often still discriminated against, sometimes formally and other times informally </li></ul> <p> 3. WHERE TO ENTER? </p> <ul><li>location-specific advantages -favorable locations in certain countries may give firms operating there an advantage </li></ul> <ul><li>agglomeration -beyond geographic advantages, location-specific advantages also arise from the clustering of economic activities in certain locations </li></ul> <ul><li>natural resource seeking -resources are tied to particular foreign locations </li></ul> <ul><li>innovation seeking -firms target countries and regions renowned for generating world-class innovations </li></ul> <ul><li>market seeking -firms go after countries that offer strong demand for their products and services </li></ul> <ul><li>efficiency seeking- firms single out the most efficient locations featuring a combination of scale economies and low-cost factors </li></ul> <p> 4. 5. 6. 7. Global versus Regional Geographic Diversification </p> <ul><li>Despite the widely held belief (and frequently voiced criticism from antiglobalization activists) that MNEs are expanding globally, surprisingly, even among the largestFortuneGlobal 500 MNEs, few are truly global. </li></ul> <ul><li>Should most MNEs further globalize? </li></ul> <p> 8. </p>