International Strategy.

What is international strategy? "An international strategy is a strategy through which the firm sells its goods or services outside its domestic market" (Hill 378). One of the primary reasons for implementing an international strategy (as opposed to a strategy focused on the domestic market) is that international markets yield potential new opportunities. Raymond Vernon captured the classic rationale for international diversification (Vernon 191). He suggested that, typically, a firm discovers an innovation in its home-country market, …

…use of international strategies is increasing not only because of traditional motivations, but also for emerging reasons. Traditional motives include extending the product life cycle, securing key resources, and having access to low-cost labor. Emerging motivations focus on the combinations of the Internet and mobile telecommunications, which facilitates global transactions. Also, there is increased pressure for global integration as the demand for commodities becomes borderless, and yet pressure is also increasing for local country responsiveness.