What you’ll learn to do: evaluate common strategies used to reach global markets

Globalization introduces a number of challenges that are unique to operating simultaneously in different countries and global markets. What is the best way to enter or take advantage of a global market? When should you adjust a product’s features to customize it to consumer needs in a different global market? How do you manage the costs and complexities of producing and/or promoting products in different locations, with different languages, cultural sensitivities, and consumer expectations?

While this next section doesn’t attempt to answer all of these questions, it explains common strategies and approaches used by multinational corporations to take advantage of global business opportunities.

The specific things you’ll learn in this section include:

• Explain how firms use importing and exporting to reach global markets
• Explain how firms use licensing and franchising to reach global markets
• Explain how firms use foreign direct investments (FDI) to reach global markets
• Explain how firms use joint ventures and foreign strategic alliances to reach global markets