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Business
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| Number of pages / Number of words: |
3 / 728 |
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The diamond model emphasizes four dimensions: factors of production; demand conditions; related and supporting industries; and patterns of firm strategy, structure, and rivalry.
Firms may enter international markets in one of several ways, including undertaking exporting or licensing, forming strategic alliance, making acquisitions, and establishing new wholly owned subsidiaries, often called Greenfield ventures...
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Most firms begin with exporting or licensing, because of their lower costs and risks, but later may expand to strategic alliances and acquisitions. Establishing a new wholly owned subsidiary is the most expensive and risky means of entering a new international market. However, such subsidiaries provide the advantage of maximum control by the firm and, if they are successful, the greatest returns...
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