COMM 315 Chapter 8: Comm 401 chapter 8.docx

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9 Jun 2014
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Identifying international opportunities: incentives to use an international strategy. R&d to use local sources: increased market size. Incentives that influence firms to use international strategies (four basic benefits): Following an international strategy is an attractive option to firms competing in domestic markets that have limited growth opportunities. The size of an international market also affects a firm"s willingness to invest in. R&d to build competitive advantages in that market. Larger markets usually offer higher potential returns and thus pose less risk for a firm"s investments: return on investment. Large markets may be crucial for earning return on significant investments, such as plant and capital equipment or r&d. Therefore, most r&d intensive industries such as electronics are international. Recoup investments more quickly due to : the pace of new technology increase (more products become absolute more rapidly) and competitors can imitate the technologies relatively quick, economies of scale and learning.

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