SOME TOOLS FOR COMPARING COUNTRIES Environmental Scanning The preceding discussions dealt with indicators of opportunity and risk. But do firms generally seek out information? What information do they deem most important? Where do they get their information? Between the mid-1970s and the late 1980s, international companies became much more sophisticated in their environmental scanning,...
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INVESTMENT PROPOSAL EVALUATION Thus far we have examined comparative opportunities on a very broad basis. At some point it is necessary for firms to do a much more detailed analysis of specific projects and proposals in order to make allocation decisions. Firms use a variety of financial criteria to evaluate foreign investments, internal rate...
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DIVESTMENT DECISIONS In much of the preceding discussions we showed that firms should consider decreasing their commitments to certain areas in order to free resources for a better fit with corporate objectives. It is now common to read that a firm is terminating its ownership in an investment in a foreign country, usually involving...
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LOOKING TO THE FUTURE International geographic expansion is a two-tiered consideration: How much of a firm’s sales and production should be outside its home country? Of that outside, how should sales and production be allocated among countries? As yet there is no comprehensive model to answer these questions, and perhaps differences among companies and...
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SUMMARY â– Because companies do not have sufficient resources to exploit all opportuni- ties apparent to them, two of the major considerations facing firms are (1) which markets to serve and (2) where to locate the production to serve those markets. â– The market- and production-location decisions are often highly interdependent because of requirements...
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