when?
a. host governments enact regulations requiring that
products sold locally meet strictly-defined manufacturing specifications or
performance standards and/or when the trade restrictions of host governments
are highly diverse
b. the industry is characterized by big economies of scale
and strong experience curve effects
c. entry barriers are low, the firm has limited financial
capital, market conditions in many countries are volatile and uncertain, and
there are big differences in production costs from country to country (because
of wage rates, worker productivity, and the prices of parts and components)
d. market growth rates vary considerably from country to
country
e. a big majority of the company’s rivals are pursuing
global strategies, have multiple profit sanctuaries, and are prone to employ
cross-market subsidization tactic
