Globalization of the world economy has encouraged U.S. companies to leverage their resources and skills by expanding into existing or new foreign markets. U.S. companies have also acquired new capabilities by locating important functional activities overseas, and joining with foreign partners in new markets through alliances and joint ventures. These opportunities, however, are tempered by the constraints imposed by the competitive forces that exist in international environments. Aggressive government intervention, technological changes, and fierce local rivalries all contribute to hostile international environments for U.S. firms’ global expansion.


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