International Business (IB) Essay Example | Topics and Well Written Essays - 1500 words

International Business (IB) - Essay Example The main lines of production were cables, rubber and paper, while electronics unit was still relatively small. However, all this changed with the International acquisitions of several European electronics companies. Thus Nokia strengthened its position in the consumer electronics and telecommunications market. Nokia has used collaborative ventures as a strategy particularly in Europe and in Asia, especially in China. Europe being a developed market, it made sense for Nokia to enter into joint ventures to build upon the expertise and the knowledge base of the existing companies. By 1991, the bilateral trade agreements between Finland and Soviet Union were abolished and Nokia started looking for intermediaries. This led Nokia to enter into indirect exports through joint ventures in Europe. China was a promising but unfamiliar overseas market. Thus Nokia entered into joint ventures with Chinese and other Asian companies and Government to achieve the following objectives: Nokia has been using networks based on innovative ideas to keep pace with a dynamic technological environment, which evolved into mobile telephony. Nokia used mainly international innovation networks in becoming a world leader in the mobile phone industry. This is the best example of Nokia’s collaborative venture strategy as an internationalization mode. Nokia’s international business strategy gradually moved from collaborative ventures to more of exports as it gained foothold in the overseas markets. However, instead of making the home country Finland its export hub, it chose Countries like China and India as their export hubs to the rest of the world. Thus Nokia’s Export policy could be seen as a furtherance of its collaborative ventures. From China alone, where Nokia earlier pursued primarily the policy of Collaborative ventures, its exports grew by 50% to a record level in the year 2001. China, which had acquired the position of the second