International Management
L. Alekseeva
Notes de cours et résumé de syllabus
Année Académique 2025 - 2026
1
,1) Introduction
2
,1. What is International Management?
International management = managing a company’s activities (planning, organizing, leading,
and controlling) to reach its goals when the company operates across different countries.
Cross-border activities:
International suppliers or customers
Employees located in other countries
Outsourcing
Foreign direct investments
…
Multinational company = business that works in its home country and in other countries, with
a main office in one country that manages all its other offices or factories worldwide.
“Born global” company = business that starts out aiming to use resources and sell products in
many countries to gain an advantage:
Internationalize rapidly, often within a few years of founding.
Unlike traditional firms that start domestically and gradually expand internationally.
Ex. Spotify and AirBnB
2. Why internationalize?
1° Market expansion
o Reach new customers.
o Enter faster-growing or higher-spending regions.
o Extend product life cycle keep products selling longer if sales slow down at home.
o Achieve scale economies spreading fixed costs (ex. R&D or brand costs) to make
operations cheaper per unit.
o Follow global customers (B2B) into their new geographies.
2° Access to cheaper resources
o Lower input costs (wages, land, materials,…) Labor costs = major cost of most
businesses (20 – 70% of gross sales).
o Proximity to raw materials and energy sources.
o Manufacturing and supplier clusters some countries specialize in certain industries, so
firms benefit from local ecosystems.
o Lower taxes, tariffs, or trade barriers.
3
,3° Access to better resources
o Specialised talent pools (ex. AI, biotech,…)
o Access to universities, labs, and innovative ecosystems.
o High-quality intermediate inputs ,…) certain regions produce world-class components
(ex. semiconductors, engines,…)
4° Gaining competitive advantage
o Pre-empt rivals and secure channels early presence can set standards and raise rivals’
entry costs.
o Build brand legitimacy as a global player.
o Diversify & upgrade the value chain place each activity where it performs best.
o Leverage home-grown strengths across borders (replicate what already works).
5° Managing regulations and risks
o Reduce exposure to single-market shocks don’t let one policy change, climate event,
boycott,… take you down.
o Spread supply risk across countries and suppliers.
o Portfolio learning: failures in one market inform others.
o Avoid unfavourable regulations in the home market locate activities where it’s lawful
and viable.
3. Drivers of internationalization
Decreasing barriers to cross-border trade and investment.
Converging of consumer tastes.
Decrease of transportation and communication costs.
…
Globalization !
4. Barriers to internationalization
! Significant differences still exist among national markets !
Processes counteracting the globalization.
4
, 1° Tariffs and regulations
o Tariffs + other trade barriers
Raise costs.
Decrease profit margins.
Force price increases.
o Standards & conformity: divergent technical, safety, and labelling rules.
Requires product redesign & third-party testing.
o Data & digital rules: privacy regimes and data-localization (keep data inside country).
Raises IT costs and fragment platforms.
o Investment screening & ownership caps: governments can block or condition deals.
o Customs frictions: paperwork, valuation disputes, port delays,…
Increases working capital and creates stock-out risk.
2° Liability of foreignness
Expanding into international markets is challenging due to the company’s “foreignness”:
Lack of familiarity with local business environment and cultural differences.
Credibility issues in attracting customers and suppliers.
Additional costs that do not exist in the home market.
Lower resources than local competitors have.
5. Role of international managers
Staying informed about regulations and developing local expertise.
Market research and global strategic planning.
Cross-cultural training and localized approaches.
Global sourcing and risk management.
…
5
L. Alekseeva
Notes de cours et résumé de syllabus
Année Académique 2025 - 2026
1
,1) Introduction
2
,1. What is International Management?
International management = managing a company’s activities (planning, organizing, leading,
and controlling) to reach its goals when the company operates across different countries.
Cross-border activities:
International suppliers or customers
Employees located in other countries
Outsourcing
Foreign direct investments
…
Multinational company = business that works in its home country and in other countries, with
a main office in one country that manages all its other offices or factories worldwide.
“Born global” company = business that starts out aiming to use resources and sell products in
many countries to gain an advantage:
Internationalize rapidly, often within a few years of founding.
Unlike traditional firms that start domestically and gradually expand internationally.
Ex. Spotify and AirBnB
2. Why internationalize?
1° Market expansion
o Reach new customers.
o Enter faster-growing or higher-spending regions.
o Extend product life cycle keep products selling longer if sales slow down at home.
o Achieve scale economies spreading fixed costs (ex. R&D or brand costs) to make
operations cheaper per unit.
o Follow global customers (B2B) into their new geographies.
2° Access to cheaper resources
o Lower input costs (wages, land, materials,…) Labor costs = major cost of most
businesses (20 – 70% of gross sales).
o Proximity to raw materials and energy sources.
o Manufacturing and supplier clusters some countries specialize in certain industries, so
firms benefit from local ecosystems.
o Lower taxes, tariffs, or trade barriers.
3
,3° Access to better resources
o Specialised talent pools (ex. AI, biotech,…)
o Access to universities, labs, and innovative ecosystems.
o High-quality intermediate inputs ,…) certain regions produce world-class components
(ex. semiconductors, engines,…)
4° Gaining competitive advantage
o Pre-empt rivals and secure channels early presence can set standards and raise rivals’
entry costs.
o Build brand legitimacy as a global player.
o Diversify & upgrade the value chain place each activity where it performs best.
o Leverage home-grown strengths across borders (replicate what already works).
5° Managing regulations and risks
o Reduce exposure to single-market shocks don’t let one policy change, climate event,
boycott,… take you down.
o Spread supply risk across countries and suppliers.
o Portfolio learning: failures in one market inform others.
o Avoid unfavourable regulations in the home market locate activities where it’s lawful
and viable.
3. Drivers of internationalization
Decreasing barriers to cross-border trade and investment.
Converging of consumer tastes.
Decrease of transportation and communication costs.
…
Globalization !
4. Barriers to internationalization
! Significant differences still exist among national markets !
Processes counteracting the globalization.
4
, 1° Tariffs and regulations
o Tariffs + other trade barriers
Raise costs.
Decrease profit margins.
Force price increases.
o Standards & conformity: divergent technical, safety, and labelling rules.
Requires product redesign & third-party testing.
o Data & digital rules: privacy regimes and data-localization (keep data inside country).
Raises IT costs and fragment platforms.
o Investment screening & ownership caps: governments can block or condition deals.
o Customs frictions: paperwork, valuation disputes, port delays,…
Increases working capital and creates stock-out risk.
2° Liability of foreignness
Expanding into international markets is challenging due to the company’s “foreignness”:
Lack of familiarity with local business environment and cultural differences.
Credibility issues in attracting customers and suppliers.
Additional costs that do not exist in the home market.
Lower resources than local competitors have.
5. Role of international managers
Staying informed about regulations and developing local expertise.
Market research and global strategic planning.
Cross-cultural training and localized approaches.
Global sourcing and risk management.
…
5
