ADMS 4900 Lecture Notes - Lecture 8: Foreign Exchange Risk, Orphan Drug, Outsourcing
28 Mar 2018
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Document Summary
Chapter 7 international strategy: creating value in global markets. Managers face many opportunities & risks when they venture abroad; trade among nations has increased dramatically in recent years. Rise of globalization & market capitalism has contributed to economic boom in the new economy where knowledge = key source of competitive advantage and value creation. To enjoy the fruits of global capitalism, governments need to have business-friendly policies to attract. Mncs and entrepreneurs, invest in technology, and nurture local suppliers & managers. The bottom of the pyramid is a trillion market. 4 broad attributes of nations that determine the diamond of national advantage : A nation"s position in factors of production (i. e. skilled labour, infrastructure) necessary to compete in a given industry. Traditionally land, labour, and capital are the building blocks for creating products, but companies in advanced nations create/develop their factors of production (i. e. investing in skilled human resource pool to develop talent & industry-specific knowledge)
