Global Strategy II: Doing Business in The Global Economy

The main challenge of managers going global is to determine the important differences between countries and how to manage them. This class provides an analytical framework on how to manage those differences inside the firm and when competing with other corporations.

How and when to enter a particular foreign market is a complex decision. While sometimes it makes sense to enter aggressively to earn first-mover advantages, in some other occasions waiting for others to enter first might be the best strategy. Similarly, entering small sometimes makes more sense than entering big. This module explores the advantages of each strategy and when to use them.

When entering foreign markets, multinational corporations have different options from which to choose. They are determined by the factors studied in the OLI and CAGE frameworks as well as the strategies chosen based on the cost reduction and differentiation pressures. This section studies how to evaluate which way to enter a foreign market, and the associated advantages and disadvantages.