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2023 ZA, BMW when it realized that profits were being eroded by the…

- - - - Provides a structured approach to aide business assess the differences and similarities between countries, to make an informed decisions about market selection and expansion.
      - Culture
        
        Language, religion and social norms
        
        consumer preferences for products and advertising strategies.
      - Geographic
        
        physical distance, transportation
        
        Australia and Europe
      - Administrative
        
        political systems and legal frameworks
        
        regulations between the EU and China that impact market access.
      - Economic
        
        Economic development level and level of income
        
        affect pricing strategies and demand for luxury goods
        
        India and Switzerland
      - Pros Vs Cons
        
        Ignores dynamic nature of culture and market conditions
        
        Oversimplify the complexities associated with expansion in international markets
        
        Insights gained from this analysis allows for strategic planning by business
        
        A way for risk assessment as it highlights the challenges associated with expanding in certain markets
        
        Offers a holistic analysis of the multiple dimensions that influence market attractiveness and feasibility
  - - - multinational corporations navigate global markets by focusing on three key strategic approaches.
      - Adaptation
        
        McDonald's as it adapted its menu to cater to local tastes in India recognizing the importance of vegetarianism in Indian culture, introducing McAloo Tikki burger.
        
        Tailor products to suite specific local preferences
      - Aggregation
        
        Achieving economies of scale by standardizing operations and products, its objective is to achieve cost efficiencies and competitive advantage through centralized coordination
        
        Coca-Cola
      - Arbitrage
        
        capitalizing on differences in cost across locations
        
        Boutique
      - Pros Vs Cons
        
        Aids in strategic alignment of global strategies with local market conditions
        
        MNCs can achieve economies of scale, enhance profitability by strategically allocating resources.
        
        Effectively lead to sustainable competitive advantages by combining global reach with local responsiveness.
        
        Overlook other important factors like company culture, political risks, and technological advancements that can impact global operations.
        
        Doesn't fully capture all the nuances that companies face when operating in different markets.
  - - - Collectivism versus individualism "make it about political systems not societies"
      - Totalitarianism
        
        Theocratic
        
        Right-wing
        
        Tribal
        
        Communist
      - Democracy "Direct and Indirect"
    - - Mixed
      - Coordinated
        
        prioritize worker well-being and stability, with a more active government role.
      - Command
      - Libral
        
        prioritize efficiency and flexibility, driven by market forces. and more focus on raising capital through stock markets
      - Market
- - - - An example of this an increase of the value of assets and liabilities of a foreign subsidiary
    - - As exchange rate fluctuations can affect a company's competitive position in international markets by influencing relative prices of goods and services.
    - - increases price of imported good if the local currency depreciates against the foreign one
  - - - Higher interest rates attract investors more demand means appreciation
- - - - refers to planning, organizing, managing, and controlling resources to achieve specific goals within a defined scope, budget, and timeline
    - - A centralized department within the organization responsible for standardizing project management practices and methodologies and it provides guidance and oversight
    - - contarcting business functions usually done inhouse to external organization located in foreign locations
- - - - aimed at shielding domestic industries and businesses from foreign competition.
    - - Subsidies
        
        Quotas
        
        Voluntary export restraints
        
        Export tariffs and prohibitions
        
        Local content requirements
        
        Administrative trade policies
        
        2 more items...
        
        Complicate supply chain management by necessitating sourcing from local suppliers, which may not always offer the best quality or cost-effectiveness
        
        China on steel to support building boom
        
        Can be used as an attack on a competitor who is short on the commodity
        
        Disrupt global supply chain
        
        Limit market accesses
        
        Reduce competition but raise price
        
        Reduce market access for international business and reach to new costumers
        
        Uneven playing filed
        
        US Department of Agriculture (USDA) subsidies corn farmers.
      - Trade war bet China and USA in 2020
        
        Increases cost of raw materials
  - - - Free trade
        
        Customs Union
        
        Common market
        
        Economic Union
        
        Political union
        
        political, economic and social policies for all members are coordinated
        
        Cooperation on a common policy for tax, fiscal and monetary
      - Neighboring countries enter into an agreement to abolish trade barriers and facilitate flow of FoP