Strategy of international business

Value creation Two basic conditions determine a firm's profits: the amount of value customers place on the firm's goods or services and the firm's costs of production. In general, the more value customers place on a firm's products, the higher the price the firm can charge for those products. Note, however, that the price a firm charges for a good and service is typically less then the value placed on that good or service by …

…marketing strategies may have to be responsive to differences in distribution channels between countries. This may necessitate the delegation of marketing functions to national subsidiaries. E.g. Germany has few retailers dominating the food market, while in Italy it is fragmented. Host govt demands Economic and political demands imposed by host country govt may necessitate a degree of local responsiveness. E.g. health care system differences between countries require pharmaceutical firms to change operating procedures.