Management and Organizational Studies 2285 Lecture Notes - Lecture 3: Comparative Advantage, Market Saturation, Switching Barriers

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2285
• Professor: Trevor Hunter

Document Summary

Internationalization: the process of operating in markets other than their domestic one. What it needs from a country and what it can do and what the country can offer the fi(cid:396)(cid:373). This is the (cid:272)ou(cid:374)t(cid:396)(cid:455)"s (cid:272)o(cid:373)pa(cid:396)ati(cid:448)e ad(cid:448)a(cid:374)tage(cid:895: what is a comparative advantage to one firm may not be so for another, requires a lot of analysis this is the focus of this course, deciding what to do there. Fi(cid:396)(cid:373)s (cid:271)e(cid:272)o(cid:373)e i(cid:374)te(cid:396)(cid:374)atio(cid:374)al i(cid:374) s(cid:272)ope fo(cid:396) a (cid:448)a(cid:396)iet(cid:455) of (cid:396)easo(cid:374)s : desire for continued growth, unsolicited foreign orders, domestic market saturation, potential to exploit a new technological advantage. Internationalization is driven by needs for efficiency and market share increases. Ho(cid:449)e(cid:448)e(cid:396), i(cid:374)te(cid:396)(cid:374)atio(cid:374)alizatio(cid:374) is (cid:373)o(cid:396)e tha(cid:374) (cid:862)si(cid:373)pl(cid:455)(cid:863) doi(cid:374)g (cid:271)usi(cid:374)ess outside the ho(cid:373)e (cid:272)ou(cid:374)t(cid:396)(cid:455) it is an organizational mindset. Internationalization is the process by which: firms increase their awareness of the influence of international activities on their future, establish and conduct transactions with firms from other countries.