Globalization & International Business: Overview of Transnational Corps & Strategies, Study notes of Economics

Download Globalization & International Business: Overview of Transnational Corps & Strategies and more Study notes Economics in PDF only on Docsity! Globalization International Business & Globalization-An Overview 1. Past two decades has been the rapid,sustained growth of International Business 2. Markets have become truly global for most goods and services 3. Emergence of Corporate Empires in the world economy-Their ownership and management has become Transnational Need for International Business WHY GO INTERNATIONAL?  PULL FACTORS (Proactive Reasons)  PUSH FACTORS (Reactive Reasons) Why Go International?  PULL FACTORS -Profit Advantage -Growth Opportunities  PUSH FACTORS -Domestic Market Constraints -Competition -Govt. Policies Drivers and Restrainers of Globalization  Driving Forces 1.Liberalisation 2.Technology 3.Transportation & Comm.revolution 4.Competition 5.Rising aspirations & wants 6.Regional Integrations  Restraining Forces 1.External factors(Govt. Policies,Global Economy) 2.Internal factors(Within the Organization,Resource Constraints) Polycentric Orientation Host Country Orientation Subsidiaries are estd. in overseas market Environment of each market is considered Emphasis put on local laws,custom & culture Employing local personnel Regiocentric Orientation Different regions as different markets Region with common mktg. characteristics considered as single market Coordination between HQ and Regional HQ Geocentric Orientation Views the entire world as single market Standardised Marketing Mix Projecting a uniform image of he company & its product