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Competing in International Markets

Teacher: Downs
Horizontales
Relocate business activity to another country
Same products in each market for economies of scale
Balance of efficiency and local products
Firms cooperate
Franchisor grants right to use its brand and products to another organization
Jobs sent overseas are returned home
Verticales
Business operation in foreign country
Responsive to local requirements
Create goods at home and ship to another country
Two or more organizations form new entity
Grant foreign company the right to create product
Land, labor, capital markets, and infrastructure