SGMT 3000 Chapter Notes - Chapter 8: Competitive Advantage, Economic Nationalism, Markets Now
14 Jul 2016
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Document Summary
50 years ago most national markets isolated by significant barriers to international trade. Managers could focus on analyzing only national markets. No need to pay attention to entry by global competitors. No need to pay attention to entering foreign markets. Managers need to consider effects of globalization on their environment. Dramatic lowering of barriers to international trade: ex. decline in international tariffs, no regulations prohibiting entry, surge in volume of international trade and value of foreign direct investment, led to globalization of production and markets. Trend toward globalization has several important implications for competition within industry: industry boundaries don"t stop at national borders. Competitors exist in other national markets too. Home markets under attack from foreign competitors. Jp morgan, american financial institution, making inroads in japan: intensified competitive rivalry in many industries. National markets that were once consolidated oligopolies now segments of fragmented global industries.
