Over the years, your firm has developed proprietary processes, using environmentally-friendly chemicals that have given your firm a leadership position for “green” customers. Part of your competitive advantage is that your products are competitively priced, which comes from your years of leadership in thisindustry. The appliances and products you manufacture tend to be bulky and a bit heavy fortheir size.As the domestic market seems to be flat, you have become increasingly interested in exploringinternational business options. You have learned that the environmentally-friendly productswould be attractive in several foreign markets. You have also identified manufacturers whomight be able to adapt their own processes to your proprietary one, but you are concerned thateven with adequate protection of intellectual property, you could be creating your nextgeneration of competitors if you do so. Competition is already tough, and there may be furtherintense cost pressures.You want to maintain your competitive advantages, and international business seems topresent the best opportunity for market expansion. You need to decide, first which types offoreign markets would be most suitable for you to enter, and second, whether exporting,licensing, or foreign direct investment strategies would be the most appropriate for your firm.You know that your decision can be informed by theories of foreign direct investment andrelated areas. How you apply the theories in the context of a strategic direction is the challengeimmediately before you.In writing your essay, focus on answering the following two questions:1. Based on your expertise in the areas of globalization, political economy, economicdevelopment, national culture, ethics, and international trade, identify which foreign nationalmarkets would be most suitable and attractive for your international expansion, and why. It isnot necessary (though encouraged) to specify country names, just the types of national marketsthat your company would be focused on.2. Based on your expertise in foreign direct investment and related areas, indicate whetherexporting, licensing, or foreign direct investment strategies would be the most appropriate foryour firm, and why.
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