Global Strategy

1.5 Credits · Level: Graduate

In 1990, there were fewer than 37,000 business organizations with operations in more than one country. By 2020, there were over 118,000, with a ten-fold increase in the number of foreign subsidiaries across the globe. All firms, whether they are directly involved in foreign markets or not, are exposed to international competitive forces that can have serious consequences for both survival and performance. For multinational corporations (MNCs) in particular, one source of competitive advantage comes from the ability to optimize operations on a global scale. By emphasizing national differences in factor markets, an MNC may be more successful at minimizing costs and maximizing revenues than a purely domestic firm. In addition, multinational firms can tap into foreign knowledge to create new products that can be used throughout their worldwide operations. Along with these opportunities, however, comes a much more complex organization to manage. Differences in legal systems, in values and management policies, and in the structure of industry and competitive behaviors across nations must be incorporated into any international business plan. In addition, political and financial risk may seriously affect the value or expected return of a company’s foreign assets. To successfully manage an international corporation requires an understanding of complex economic, political and governmental issues and an appreciation for the fact that there are differences in how these issues may affect a firm across various nations. This course seeks to provide you with the skills, knowledge and sensitivity required to understand and evaluate global business opportunities and challenges by exploring the unique competitive, political and social environments in which international business takes place. We will explore how firms respond to the strategic demands of the global business environment and how firms compete in the global business environment. We will consider when and why crossing national borders creates value for firms and where and how firms should locate their foreign activities, including differences and benefits across several foreign entry modes. The overarching goal of this course is to enable you to develop and fine-tune skills in analyzing the strategic choices of firms within both global and local pressures in industries across different countries in the international business environment.