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Managers face a number of challenges when using traditional valuation approaches to value projects in an emerging market. It is important, therefore, that managers not only be aware of, but…

This note is intended to provide insights into variation across firms and industries. It reviews the various types of variation among firms–variations in revenues, profits, size, employment, capital intensity, output…

This note explains the considerations involved in determining a firm’s vertical, horizontal, and geographic scope. It is organized into five sections: An introduction that presents important questions related to strategy…

The purpose of this note is to consider the decisions that firms’ leaders make about the scope of their business. It examines three companies–Domino’s Pizza, General Mills, and General Electric–who…

A review of the topic of subsidies yields a wide range of perspectives. Many economists believe that subsidies, when used appropriately, are helpful because they can encourage market development and…

Most business people, pundits, and politicians in the U.S. and other developed nations have come to grips with the phenomenon of manufacturing jobs moving offshore: the process variously referred to…

This note is an adaptation for classroom use of Chapter 2 of “The Services Shift” by R.E. Kennedy (2009). It introduces students to Michael Porter’s 1985 value chain approach to…

The so-called New International Economics (alternatively, Strategic Trade Theory) explores situations where markets economic conditions depart from standard conditions – because of market power, economies of scale, externalities, etc. Economists…

Whether nations benefit from trade is a question that has been passionately debated throughout history. The theory of comparative advantage is one of the more useful, yet frequently misunderstood, topics…

National governments keep track of financial flows into and out of their countries by using balance of payment (BOP) accounting, a system for measuring a country’s sources and uses of…