At the Start Of Globalization:
External and Internal assessments may be conducted before a firm enters global markets. External assessment involves careful examination of critical features of the global environment. Internal assessment involves identification of the basic strengths of a firm's operations.
- Internal Assessment
- External Assessment
Internal assessments involve identification on the basic strength of the firm's operation. These strength are particularly important in the global operation, because they are often the characteristics of a firm that the host nation values most and thus offer significant bargaining leverage.
Identification of the firms own strength:
- Managerial skills
- Capital
- Labor
- Raw Material
External Assessment involves careful examination of critical features of the global environment, particular attention being paid to the status of the host nations in such areas as economic progress Matching host nation's opportunities with own strengths.
- Economic Progress
- Political Control
- Expansion of Industries
- Favorable Balance of Payment.
