A strategy may be defined as the actions that managers take to attain the goals of the firm.

A firm moves its products overseas even when an indigenous competitor have the same products and core competencies.

International expansion guarantees that a firm will increase profitability.

A multinational firm can create additional value by identifying valuable skills created within its foreign subsidiaries and leveraging those skills within its global network of operations.

The pressures of cost reduction and local responsiveness often influence the strategy a firm pursues internationally.

Firms pursuing a localization strategy customize their product offerings, marketing strategy and business strategy to national conditions.

Firms pursuing a global standardization strategy focus on reaping the cost reductions that come from experience curve effects and location economies.

Firms earn a profit when costs exceed revenues.

Learning effects refer to cost savings that come from learning by doing.