IBA550

Globalization

Growing interconnectedness and interdependence of social, political, and economical environments

Market globalization

Ongoing economic integration and interconnectedness of global economies

Drivers of globalization

Less trade barriers (less tariffs, taxes), dire to increase wealth of all stakeholders, technological advancements, development of standard container, SWIFT, political reforms and adoption of free markets

Societal effects of globalization

Environmental argument, loss of low skilled jobs in developed countries, 80th to 90th percentile of global income have not seen high real income gain

Revised Uppsala Model of Internationalizaiton

Gradual process, expansion into markets similar to home market, starts with knowledge of opportunities

Liability of Foreigness

additional cost and challenges a business incurs compared to local competitors

Paradox of consistency

the more consistent the firm is with the external environment in its home market, the greater the challenge it'll face in foreign environments

CAGE

Cultural, Administrative, Geographic, Economic Disputes the thesis that borders and cultural differences does not matter in global expansion

How to gain competitive advantage

Through acts of innovation, perfect market segmentation,