2. The internationalization theory states, licensing has three major negatives as a strategy for to adapting to the foreign market opportunities. They include licensing may result in a firm giving away valuable technology to foreign competitors, licensing does not give a firm control over manufacturing, marketing, and strategy in a foreign country, and such capabilities are often not amendable to licensing. Knickerbocker’s theory of FDI suggests that firms follow their nation’s competitors in other countries. This theory had been recognized with to oligopolistic industries. The internalization theory is probably the best explanation of the historical pattern of horizontal FDI.
3. Successful foreign investment leans on can the company get an advantage over existing businesses. Do they have the technology or a strong name behind the business? There are many advantages that they could take. Location can be crucial to being close to the customers. This will lead to steady sales as well as less costs in terms of transportation to the consumer or the market. The business will also save on costs from the suppliers. This will be less freight and transportation to their warehouse for production of the raw goods. Time is also...
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...Chinese goods in the Japanese stores, and local rivals trying to compete with prices were some of the many obstacles Walmart had to overcome to achieve in order to maintain market share in Japan. Walmart had difficulty adapting to the culture. If they were able to adapt to the culture while also introducing new concepts into Japan’s business models, it would’ve been a smoother encounter in the new market.
5. Due to actions like selling more popular products, relying on their global supply chain to introduce new products into Japan, and importing food directly from other countries to undercut existing prices led to higher success in the country. With this, they are going to enjoy the first-mover-advantage as they learned from their mistakes. They will achieve success in the country. They overcame all of the cultural differences and regulations in prior years.
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