Running head: BUSINESS STRATEGIES
1. Discuss briefly the different Business motives (See textbook p. 310 - 313) for Companies’
expansions abroad (Internalization).
The reasons for business internationalization may be external or internal. Internal motives
are driven by an increased potential for growth in foreign markets than in domestic markets.
When motivation is internal, the business may get an overseas buyer who wants something from
the company. However, Instead of looking at motives as either internal or external, a better way
is to view them as proactive or reactive motives. Proactive motives come from the business
belief that expansion will improve the firm’s current position. Some of the most common
proactive reasons include access to new markets, to streamline efficiencies and secure natural
resources. External pressures, on the other hand, drive reactive motives when the business must
remain competitive to unfavorable markets.
Forces that may drive internationalization include declining domestic demand, increased
competition, and volatile domestic conditions. Research suggests that ...
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