Chapter 13

Apuntes

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without prior written consent of McGraw-Hill Education. Chapter 13: The Strategy of International Business Learning Objectives LO 13-1 Explain the concept of global strategy. LO 13-2 Recognize how firms profit by expanding globally. LO 13-3 Understand how cost reduction pressures and local responsiveness influence strategic choices. LO 13-4 Identify and select different global strategies for competing in the international marketplace. Introduction The focus shifts from the macro environment to the firm itself—specifically, the actions managers take to compete more effectively. This includes increasing revenue and profitability through foreign market expansion and value creation. Strategy and the Firm (1 of 7) LO 13-1: Explain the concept of global strategy. Profitability depends on profit growth and maximizing enterprise value for owners and shareholders (see Figure 13.1). Value Creation Value is measured by the difference between a firm’s costs of production and the perceived quality by consumers. The higher the ...