In this module, the concept of “Liability of Foreignness” was presented.
In your groups, find an example of a firm that struggled with the Liability of Foreignness in their initial market entry and discuss how the firm addressed this challenge.
company- OFO BIKE SINGAPORE
The liability of foreignness is the primary challenge of entering and succeeding in overseas markets. It is the inherent disadvantage foreign firms experience in host countries because of their non-native status. There are two ways this liability can emerge:
With these significant circumstances and odds, how do foreign firms crack new markets? The solution is to deploy overwhelming resources and capabilities so that, after offsetting the liability of foreignness, there is still some competitive advantage.
Despite the common belief that every firm should expand internationally, the actuality is that not every firm is prepared to tackle the challenges that come with it. Venturing overseas too early may be harmful to the firm’s overall performance, especially when the margin for error is minimal, as is the case with smaller firms. Two underlying factors (2×2 framework) that lead some firms motivated to go abroad, while other firms are content to remain local:
Enthusiastic Internationalizer: These are large firms in a small domestic market. These firms are likely to exhaust opportunities in a small country quickly. Considering Nestlé of Switzerland, their food products’ demand is somewhat limited given Switzerland’s small population (seven million). As a result, most of Nestlé’s sales and employees are outside of Switzerland (Peng, 2016).
Follower Internationalizer: These are small firms in a small domestic market. They often follow their larger counterparts, such as Nestlé, to go abroad as suppliers. Other small firms may similarly venture abroad, not to directly supply larger firms, but expand beyond the domestic market’s inherently limited size. A considerable number of small firms from small countries such as Austria, Denmark, Finland, New Zealand, Singapore, Sweden, and Taiwan are active overseas (Peng, 2016).
Slow Internationalizer: These are large firms in a large domestic market. In comparison to enthusiastic internationalizers, these firms’ overseas activities are usually slower. For example, Wal-Mart’s pace of internationalization is more gradual than its two global rivals based in relatively smaller countries, Carrefour of France, and Metro of Germany (Peng, 2016).
Occasional Internationalizer: These are small firms in a large domestic market confronted with a relatively weak resource base and a large domestic market. In the United States, many small firms are not compelled to go abroad but can be identified as “occasional internationalizers” if they have any international business.
According to the model, the ability of the firms in an industry whose origin is in a particular country (e.g., South Korean automakers or Italian shoemakers) to be successful in the international arena is shaped by four factors:
(1) their home country’s demand conditions
(2) their home country’s factor conditions
(3) related and supporting industries within their home country
(4) strategy, structure, and rivalry among their domestic competitors.
Why Choose Us
We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.
Professional Academic Writers
Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.
Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.
We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.
At Essay USA, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.
Customer Support 24/7
Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: email@example.com.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Essay USA has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.
At Essay USA, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.
Admission and Business Papers
Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.
Editing and Proofreading
Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.
We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.