2.5 An Integrated Model of International Corporate and Business Strategies

A firm should choose its international corporate strategy based on the need for both local responsiveness and for global integration （Hitt, 2005）.When the need for global integration is low, but there is great need for local market responsiveness, the firm should adopt a multidomestic strategy. When the need for global integration is high and there is little need for local market responsiveness, the firm should adopt a global strategy. When there is a great need for both global integration and local market responsiveness, the firm should adopt a transnational strategy （Hitt, 2005）. Following the two dimensions of globalization, i.e., global integration, and local responsiveness, the author puts all the business strategies and corporate strategies into the following framework as indicated in Fig. 2.1.

Fig. 2.1 An Integrated Model of International Corporate and Business Strategies

Functional strategies relate to the major functional departments with the business units. Functional strategies involve all of the major functions, including finance, R&D, marketing and manufacturing. It concerns the question“how do we support the business-level competitive strategy? ”（Thompson, Gamble &Strickland, 2004）. This book will discuss some of these functional strategies such as marketing strategy and advertising strategies in the subsequent chapters.