INTERNATIONAL STRATEGY:

Creating Value in Global Markets

 The increase in international exchange, including
trade in goods and services as well as exchange of
money, information and ideas.
1. Factor Endowments
2. Demand Conditions
3. Related and Supporting Industries
4. Firm Strategy, structure and rivalry
 The nation’s position in factors of production
such as skilled labor or infrastructure,
necessary to complete in a given industry.
 The nature of home-market demand for the
industry’s product or service.

 Demanding consumers drive firms in a country to:

Meet high standards
Upgrade existing products and services
Create innovative products and services
 The presence or absence in the nation of
supplier industries and other related
industries that are internationally
competitive.
 The conditions in the nation governing how
companies are created, organized and
managed, as well as the nature of domestic
rivalry.
 Increase Market Size
 Take advantage of Arbitrage
 Enhancing a Product’s Growth Potential

 Optimize the location of Value Chain

Activities
 Learning Opportunities
 Explore Reverse Innovation