Entering a specific market. These are smaller tier cities, Pittsburg of china. There is more money, even in second tier city. There is an opportunity, challenge. Lets likely to let go of their money, we like to save. We like to spend and going to debt for that. Are there subcultural issues? The whole thing about communism, materialism was not the highest goal ideology. DIY (do it yourself) dutch people get do it yourself. Do it yourself died in china. Electronics, they pulled out. So understanding the consumers and the difference between a dutch, chinees market. It’s a challenge for the company, there are al lot of things going on. A whole nother level of compleixity when you cross borders. A lot of uncertainty. Think about stratgegilcaally to handle these things. Currency risk, political risk, entirely different structure.
Is
The cost of doing business can be higher if there is a lack of trust. How to navigate these kind of difference is important how to make a profit. Because of these complexity, its interdisciplinary, we have political science and economics. I’m an lawyer, phd strategic management. That makes it interesting.
Value creating opportunities. A lot of private companies, but also government. Coutry other than national origin. The firms that a going over boarder and impacting over border. It’s a holistic approach to international business. The level of analysis is often multinationals.
There are a lot of different ways to own and control business across borders.
Burnet.
happened differences factor endowments across borders, one country had a lot of capital, another country a lot of natural resources. Because of these different in factor endowments fdi was happening to capitalize on these things. They were looking at transfers of capital. They weren’t viewing fdi as a firm, but between contries. They also had simplistic assumptions about perfect