International Business Strategies: Globalization & Market Entry
Globalization and International Business Strategies
Globalization: Process by which people, products, information, and money move freely across borders.
Global Industries: Industries in which companies need to operate in key world markets in an integrated and coordinated way to survive.
Multinational Companies: Companies that operate in various countries outside their countries of origin.
Global Companies: Multinational companies that operate in the world in an integrated and coordinated way.
Born Global:
Read MoreKey Business Management Definitions and Concepts
Core Organizational Concepts
Mission Statement
A Mission is a short statement identifying the purpose of an organization. It includes the scope of its operations, products or services, its primary customers or market, and its geographical region.
Vision Statement
A Vision is an aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future.
Evaluation Phases
Evaluation can occur in different phases:
- Ex-ante (Previous): Conducted before an initiative
Chile’s Inflation Targeting and Monetary Policy
Chile’s Monetary Policy Framework
Under inflation targeting, the primary objective of monetary policy is price stability. It also aims to reduce the gap between actual output and potential output (full employment product), thus helping to reduce volatility in both inflation and output.
The parameters defining Chile’s inflation-targeting monetary regime are:
- The price index defining the target.
- The target value (center of the range).
- The width of the target range.
- The policy horizon.
- Operational instruments.
Understanding Product Attributes, Benefits, and Classification
What is a Product?
A product is anything that can be offered to a market to satisfy a want or need. It can be a physical item, a service, or an idea.
Basic Benefits of Products
These are the core benefits a product offers, defining its primary function or raison d’être.
Ancillary (Auxiliary) Benefits
These benefits add extra features or attributes, increasing the product’s perceived value to the consumer.
Aesthetic Benefits
Aesthetic benefits enhance a product’s attractiveness through shape, design, and
Read MoreEconomic Consequences of Peace: Interwar Instability & Depression
Economic Consequences of the Peace
End of 1st Globalization: International economic disintegration (capitals, commodities & labor). End of EU hegemony (GB). Social and civil conflicts. Development of Fascism & Communism.
EU Post-WW1
After the peace treaties: Germany had to compensate the winners with reparations and the regions of Alsace & Lorraine. No more empire = Weimar Republic. War debt from the US because of the loans provided to allies. Unemployment due to the return of the soldiers.
Read MoreUnderstanding Market Structures and Competitive Dynamics
Market and Competition
We define the market as a mechanism that encompasses all procurement activities for a particular product or sale by companies and claimants. It forms the basis of market economies and mixed economies, promoting exchange through the free operation of supply and demand.
Perfectly Competitive Markets
A perfectly competitive market is one in which all goods and services are voluntarily exchanged for cash at a price set by the market, resulting from the free functioning of the laws
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