Summary


In the statement, it is considered that game theory is hard to use in developing and implementing international business strategy. In the following parts, by analyzing the standpoint of the statement and the definition of game theory, I would critically assess the statement.


In the following parts, some general examples would be provided to discuss whether or not game theory is suitable for international business strategy and why the statement is considering that in international business game theory is hard to be developed. In addition, the effects of globalization on game theory in international business strategy will be considered as an additive factor.


Finally a conclusion would be made that although game theory cannot be used in international business strategy as simply as it is used in domestic firm strategy, it can be expected that game theory can be well used in regions and blocs development in the future.


Analysis on the statement


Firstly why the statement indicates that game theory is too hard to use in international business strategy thinking should be discussed, and before this, the definition of game theory can explain some questions.


Game theory can be defined that under some situations and rules, depending on the information they hold, individuals take their own strategies and acts at the same time or in some sequence, to get their own goals (Norton, 1995, P36). Here some key words related to the statement can be discussed.


Rules: although players in the game would make a rule as soon as they reach equilibrium, previously they must have a rule to start the game. In the general business strategy, because firms are under the same policies and laws, the final equilibrium is easy to reach. But, when the business is taking place between different blocs or different regions, not only economic factor but also policy or other...