chapter  6
36 Pages

Strategic Management in the International Environment

Internationalization has become the major trend in business since the 1980s. It allows a firm to expand into new markets in order to seek higher profits and lower-cost resources. In addition, internationalization allows a firm to increase economies of scale and lengthen the life cycle of its products. International trade has continued to increase over the years. As of December 2001, U.S. exports of goods reached $729,100 million, and imports of goods reached $1,140,999 million.1