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International Markets

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Business
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Vellore Institute of Technology University
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International market
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Factors that motivate companies to expand internationally
One of the factors that motivate companies to move internationally is to access new
markets. This gives the companies chances of conquering the new territories reaching more
customers. Sales and profits are increased since the Company is able to advertise its products
overseas. Diversification is another factor in moving internationally. The Company diversifies its
assets protecting the bottom line of the Company against unforeseen events. A company may
offset in a market with negative growth and successfully operate a new one. Operating
internationally helps the companies to introduce their unique products attracting more customers.
The Company diversifies its products according to customers’ tastes and preferences. Access to
talent is another factor in moving internationally. Moving internationally enables the Company to
access unique and experienced talents leading to increased productivity (Nuruzzaman et al., 2019).
The market opportunity is another factor whereby new habits, tastes, and segments appear, and
new products are required to satisfy them.
Companies may move internationally due to competitive advantage. This aims at attacking
the foreign competitors reducing the market share of the competitors. It can also involve following
the competitor’s moves, and this prevents the competitor from operating alone in the market. The
government may give incentives for the internalization of domestic companies. The trade barriers
in a foreign country may also encourage the Company to start operating internationally. This can
also refer to quick licensing, lower taxes, and easy access to loans at a lower rate. The lower cost
of production is another factor attracting companies to operate internationally. This involves access
to cheap labor, raw materials, and lower power costs. The environmental regulations may also
encourage the companies to move to a less restrictive location.
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1 International market Your name Instructor’s name Course Date of submission 2 Factors that motivate companies to expand internationally One of the factors that motivate companies to move internationally is to access new markets. This gives the companies chances of conquering the new territories reaching more customers. Sales and profits are increased since the Company is able to advertise its products overseas. Diversification is another factor in moving internationally. The Company diversifies its assets protecting the bottom line of the Company against unforeseen events. A company may offset in a market with negative growth and successfully operate a new one. Operating internationally helps the companies to introduce their unique products attracting more customers. The Company diversifies its products according to customers’ tastes and preferences. Access to talent is another factor in moving internationally. Moving internationally enables the Company to access unique and experienced talents leading to increased productivity (Nuruzzaman et al., 2019). The market opportunity is another factor whereby new habits, tastes, and segments appear, and new products are required ...
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