International Business Strategy

International business strategy. 

Question 1

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(a) What are the major risks of internationalization for firms? Clarify your answers with appropriate examples.

(b) Foreign Direct Investment (FDI) is both expensive and risky yet many organizations prefer FDI over either exporting or licensing. Discuss with examples the various firm-level (organizational) motives for FDI.

Question 2

(a) Explain the three basic decisions that firms contemplating foreign expansion must make. Use examples where possible to clarify your answers.

(b) Outline the various roles of a foreign subsidiary and discuss the organizational and host government factors that can determine the evolution of foreign subsidiaries?

Question 3

(a) Explain the key tenants of institutional theory. Illustrate how institutions impact corporate decision-making in international business.

(b) Discuss the pressure for local responsiveness for firms in choosing a global strategy. What are the strategic implications for a firm in responding to this pressure? For more information on International Business Strategy check on this:

Impact of International Actors

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