The document discusses strategies for foreign market entry, including overcoming liability of foreignness, understanding factors that influence internationalization, and a comprehensive model for foreign market entries. It addresses questions of where, when, and how to enter foreign markets, analyzing location-specific advantages, timing of market entry, and options for entry modes. Key tradeoffs between equity and non-equity entry modes like exports, licensing, and foreign direct investment are also summarized.

1. Entering Foreign Markets Part II: Business-Level Strategies Global Strategy Mike W. Peng chapter 6

5. Firm Size, Domestic Market Size, and Propensity to Internationalize Figure 6.1

6. A Comprehensive Model of Foreign Market Entries Figure 6.2

10. Where to Enter? Location-Specific Advantages (cont’d) Table 6.1 Source: First two columns adapted from J. Dunning, 1993, Multinational Enterprises and the Global Economy (pp. 82–83), Reading, MA: Addison-Wesley. STRATEGIC GOALS LOCATION-SPECIFIC ADVANTAGES ILLUSTRAVTIVE LOCATIONS MENTIONED IN THE TEXT Natural Resource Seeking Possession of natural resources and related Transport and communication infrastructure Oil in the Middle East, Russia, and Venezuela Market Seeking Abundance of strong market demand and customers willing to pay Seafood in Japan Efficiency Seeking Economies of scale and abundance of low-cost factors Manufacturing in China Innovation Seeking Abundance of innovative individuals, firms, and universities IT in Silicon Valley and Bangalore, financial services in New York and London and aerospace in Russia STRATEGIC GOALS LOCATION-SPECIFIC ADVANTAGES ILLUSTRAVTIVE LOCATIONS MENTIONED IN THE TEXT Natural Resource Seeking Possession of natural resources and related Transport and communication infrastructure Oil in the Middle East, Russia, and Venezuela Market Seeking Abundance of strong market demand and customers willing to pay Seafood in Japan Efficiency Seeking Economies of scale and abundance of low-cost factors Manufacturing in China Innovation Seeking Abundance of innovative individuals, firms, and universities IT in Silicon Valley and Bangalore, financial services in New York and London and aerospace in Russia

11. First Mover Advantages and Late Mover Advantages Table 6.2 FIRST MOVER ADVANTAGES LATE MOVER ADVANTAGES (OR FIRST MOVER DISADVANTAGES) Proprietary, technological leadership Opportunity for free ride on first mover investments Resolution of technological and market uncertainty Preemption of scarce resources Establishment of entry barriers for late entrants First mover’s difficulty to adapt to market changes Avoidance of clash with dominant firms at home Relationships and connections with key stakeholders Such as customers and governments

16. The Choice of Entry Modes: A Decision Model Figure 6.3 Source: Adapted from Y. Pan & D. Tse, 2000, The hierarchical model of market entry modes (p. 538), Journal of International Business Studies, 31: 535–554.