North American and European Plastic Equipment Processing Companies’ Relationships with Andean Markets
Magíster en Administración - CESA - Master of Business Administration - Carleton University
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In an increasingly competitive and globalized market, companies have to confront the decision to sell their products and services outside of their own country’s frontiers or domestic market. This decision to internationalize is the result of a series of decisions (Johanson & Vahlne, 1977) that do not always result in a new company entity or organization. Furthermore, there are some markets which companies consider unattractive to start-up local operations by means of subsidiaries and/or production plants.
The purpose of this investigation is to establish why North American firms, specifically, plastic processing machinery firms, don’t have aggressive strategies to improve their performance in Andean countries while the European competition has a better attitude towards developing local operations. The document presents the main theories that might explain why North American firms seem to be less interested in Andean Markets.