INTERNATIONAL BUSINESS STRATEGIES

INTRODUCTION
This essay will firstly analyse three principal benefits, namely, earn a greater return on core competencies, realise location economies and realise experience curve effects, and give example to show how they are available to a firm moving from a domestic to an international strategy.

Then the second part will respectively discuss the principal influences on the choice between a multidomestic, global and transnational strategy that international firms take. This discussion will identify why a firm will take a certain strategy out of these three and what the advantages and disadvantages are. Then shortly give a conclusion about these three strategies.

THREE PRINCIPAL BENEFITS

Earn a great return on core competencies

The first benefit is that a firm moving from a domestic to an international strategy can earn a greater return on core competencies. This means the firm can get many advantages on resources and capabilities over its rival.

One example is Starbuc...