1. Internationalization: Are we in or out?

2. 7 - 2 The Global Economy: A Brief Overview Opportunities and risks when firms diversify abroad -Trade across nations > trade within nations -Rise of market capitalism around the world -Economies of East Asia have grown rapidly -Poor education levels -Failure to manage broader economic factors in some countries

3. 7 - 3 International Expansion Why do companies turn to international expansion?

4. 7 - 4 Potential Risks of International Expansion Political and economic risk -Social unrest -Military turmoil -Demonstrations -Violent conflicts and terrorism -Laws and their enforcement

5. 7 - 5 Effect of Corruption The 2006 Transparency International Corruption Perceptions Index (CPI) The five most corrupt countries are 1.Haiti (CPI Score: 1.8) 2.Myanmar (CPI Score: 1.9) 3.Iraq (CPI Score: 1.9) 4.Guinea (CPI Score: 1.9) 5.Sudan (CPI Score: 2.0) Source: Transparency International, 2006, www.transparency.orgwww.transparency.org

6. 7 - 6 Risk Rankings Exhibit 7.3 A Sample of International Country Risk Rankings Source: Adapted from worldbank.org/html/prddr/trans/so96/art7.htm.

7. 7 - 7

8. 7 - 8 Continuum of Radical and Incremental Innovations Exhibit 12.1 Continuum of Radical and Incremental Innovations

9. 7 - 9 Entry Modes of International Expansion Adapted from Exhibit 7.10 Entry Modes for International Expansion

10. 7 - 10 Media Accuracy There is no such thing as accurate media!!!

11. 7 - 11

12. 7 - 12

13. 7 - 13

14. 7 - 14