This document discusses various strategies that companies can use to enter international markets or form alliances. It provides examples of a domestic company merging with a foreign company to acquire its market share and capabilities, like Nokia partnering with Siemens. Strategic alliances are also covered as a way for competitors to collaborate in key areas instead of competing. Finally, the document defines free trade zones as geographic areas where goods can be manufactured and re-exported without customs intervention to facilitate international trade.

2.  Domestic company merge with foreign
company to enter Int’l market
 Domestic company may acquire / purchase
foreign company
 Example: Nokia (fin) – siemens (germany)
data n/w & telecommunication division

3.  Advantages:
-immediate grab of market share
-less time & quick to execute
 Disadvantages:
-tedious task (bankers, lawyers from both
countries)

5.  This strategy seeks to enhance the long term
competitive advantage of the firm by
forming alliance with its competitors,
existing or potential in critical areas, instead
of competing with each other.
 The goals are to leverage critical capabilities
increase the flow of innovations and increase
flexibility in responding to the market &
technological changes.

6.  They are frequently between firms in
industrialized nations.
 The focus is often only creating new products
and/or technologies rather than distributing
existing ones
 They are often only created for short term
durations.

9.  is a specific class of special economic zone. They
are a geographic area where goods may be
landed, handled, manufactured or reconfigured,
and re-exported without the intervention of the
customs authorities.
 Free-trade zones are organized around major
seaports, international airports, and national
frontiers—areas with many geographic
advantages for trade. It is a region where a
group of countries has agreed to reduce or
eliminate trade barriers.
 Free trade zones can also be defined as labor-
intensive manufacturing centers that involve the
import of raw materials or components and the
export of factory product.