International Business: The New Realities, 5th Edition

Market Globalization: Organizing Framework

1. 2.1 Understand market globalization as an organizing framework.

Firms expand abroad proactively to increase sales and profit through new markets, find lower-cost inputs, or obtain other advantages. Firms may also internationalize reactively because of unfavorable conditions in the home market such as regulation or declining local industry sales. Exhibit 2.2 presents an organizing framework for examining market globalization. The exhibit makes a distinction among:

Exhibit 2.2

The Driving Forces, Dimensions, and Consequences of Globalization

Figure 2.2 Full Alternative Text

• driving forces or causes ...