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change over time Strategic First mover advantage and only provider of a product to a market Cross subsidization between countries Transfer price Risk Diversify macroeconomic risks (business cycles not perfectly correlated among countries) Diversify operational risks (labor problems, earthquakes, wars) Learning Broaden learning opportunities due to diversity of operating environments Reputation Crossover customers between markets - reputation and brand identification Sumantra Ghoshal of INSEAD proposed a frameworkprising three categories of strategic objectives and three sources of advantage that can be used to achieve them.
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