LectureTopic.pptVIP

7-* McGraw-Hill/Irwin Copyright ? 2011 The McGraw-Hill Companies, All Rights Reserved. Chapter 7 Strategies for Competing in International Markets The Appeal of International Market Expansion Gain access to new customers Help achieve lower costs Capitalize on core competencies Spread business risk over a broader base Factors Shaping Strategy Choice in International markets The degree to which there are important cross-country differences in cultural, demographic, and market conditions Whether opportunities exists to gain a location-based competitive advantage The risks of adverse shifts in currency exchange rates The extent to which governmental policies affect the business environment Cross-Country Differences in Cultural, Demographic, and Market Conditions Differences in cultures and lifestyles Differences in market demographics Variations in market growth from country to country Country to country differences in manufacturing and distribution costs Shifts in exchange rates Differences in host government policies and trade regulations How Markets Demographics Differfrom Country to Country Consumer tastes and preferences Consumer purchasing power Consumer buying habits Distribution channel emphasis Demands for localized products The strength of competitive rivalry Location-Based Cost Drivers Manufacturing costs vary from country to country based on Wage rates Worker productivity Government regulations and industry subsidies Inflation rates Energy costs Tax rates The Effects of Shifting Exchange Rates Exporters gain in competitiveness when the currency of the country in which the goods are manufactured is weak Exporters are at a disadvantage when the currency of the country where goods are manufactured grows stronger Host Government Policies Affecting International Competition Examples of host government policies affecting foreign-ba