By the end of this chapter students should:

• Have an appreciation of the forces that are shaping the global economy
• Be able to distinguish between internationalization and globalization and be aware of the typical stages of the internationalization process
• Understand and be able to critique explanations of national competitive advantage
• Be able to analyse the factors that determine the extent of industry and firm globalization and the ways in which firms can achieve competitive advantage through globalization
• Understand the strategic choices which face firms that operate internationally and be able to analyse the relationship between strategy and structure for such firms
• Be able to distinguish between country-specific and firm-specific advantage and to discuss the way in which transnational firms attempt to manage the tensions they face
• Be able to identify the key problems senior managers face in running international operations and to cite some examples of good practice.