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International Strategy (Patterns of Internationalization (global…

- - - - operate that business successfully locally
        
        global integration
        
        local responsiveness
- - - - foreign direct investment and we don't see as much importing and exporting
  - - - high on international trade and low on foreign direct investment
- - - - gain some local cost or production advantages that that local partner is already realizing
      - the local partner might provide some political influence over those very things like taxes and tariffs
      - Potential downsides
        
        profitability potential is reduced
        
        lose some control over things like product quality
        
        customization potential
        
        host-country partner might actually learn how to compete with you directly
  - - - fixed cost structure stays roughly the same
        
        excess capacity
      - Disadvantage
        
        high transportation cost
        
        less control over the marketing
        
        encounter high import tariffs
  - - - advantages
        
        greatest control over technology and market
        
        operations can be expanded incrementally as the firm learns and grows
        
        minimizes the risk of appropriation
      - disadvantages
        
        expertise relevant to that new foreign location
        
        business licenses
        
        startup lessons
        
        engage in local responsiveness
    - - advantages
        
        rapid entry
        
        perception
        
        political influence
      - disadvantages
        
        costly to acquire a foreign firm
        
        requires complex and costly negotiations
        
        merge the cultures