The Different Perspectives on International Strategy

The Different Perspectives on International Strategy

DOI: 10.4018/978-1-4666-6513-2.ch004
OnDemand PDF Download:
$30.00
List Price: $37.50

Abstract

The products and processes complexity, the evolution and the fast obsolescence of technologies, and the difficulties in reaching new geographical or specialized markets oblige the companies to reinforce their strategy at the international level. The objective of this chapter is to show how these operations affect not only the competitive advantages of the firms but also the comparative advantages of the countries. In the literature, several theories and conceptual frameworks exist to explain a firm's internationalization strategy and the influences of different factors that affect the choice of entry. The internationalization logic is the result of a multi-field step. The intensification of internationalization is explained as much by external factors (political-regular and socio-economic conditions, technological context, industrial competing dynamics) and by specific companies factors (positioning, distinctive resources, core competences and innovation, etc.). The global competitive environment varies both by industry and by country.
Chapter Preview
Top

The Scope Of International Business (Ib)

The scope of international business (IB) is very large. Defining the domain of IB is still a challenge. IB field is concerned with the issues facing international companies (private and public). Overseas markets are characterized by different political, economic, cultural, legal, environmental systems that the firms must adapt to.

We exclude in this definition, studies of:

  • International trade and economics which do not directly influence the firm (such as issues of exchange rate determination and international finance referred to as international monetary economics or international macroeconomics);

  • International law and relations;

  • Single countries.

One of the most comprehensive definitions of IB is presented by Nehrt et al., (1970, pp. 1-2) in their seminal book following two criteria:

  • Analysis of firms' interactions with their international environments (macroeconomic, political, legal and socio-cultural factors); and,

  • Interactions of firms from different countries and analysis of their strategies.

Complete Chapter List

Search this Book:
Reset