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1 Discussion And 1 Journal Article.edited

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Management
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Campbellsville University
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Running head: DISCUSSION & JOURNAL ARTICLE
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Discussion & Journal article
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Course
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DISCUSSION & JOURNAL ARTICLE
2
Discussion
The motivation for companies international expansion
There are numerous reasons why companies seek to expand their operations beyond their
borders to foreign territories. However, a majority of these companies are motivated by the
desire to grow and gain a competitive advantage in their services. Kokemuller and Elkins (2018)
identify some of the primary reasons that drive international expansion to include the desire to
expand and grow their operations. Global markets represent opportunities that companies can
take advantage of and increase their revenue generation, gain new investment opportunities,
reduce their costs of service, diversify, and even compete for new sales.
Companies that explore international markets are able to improve their profit margins
since they gain new customer bases that increase the streams of revenue to the company. Further
companies could venture into this area as a result of the potential benefit of cost-saving that it
represents. An example is where the company relocates its operations internationally and bases
its plants next to the supplier of their raw material, decreasing costs of production. The prices of
labor are also significantly lower in some international markets with a vast population base,
motivating companies’ global expansion.
Further in the competitive business world that companies operate in, the motivation to
expand internationally could be as a result of wanting to increase their sales and deal with
competition (Zekiri, 2016). This offers the companies an opportunity to have a presence in
international markets which offer them numerous advantages.
The desire to diversify also motivates movement into international market. The
diversification could be in a number of ways such as the risk of slow demand. When the
company is operating in a number of global markets, sluggish demand in one market could be

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Running head: DISCUSSION & JOURNAL ARTICLE Discussion & Journal article Name Course University 1 DISCUSSION & JOURNAL ARTICLE 2 Discussion The motivation for companies’ international expansion There are numerous reasons why companies seek to expand their operations beyond their borders to foreign territories. However, a majority of these companies are motivated by the desire to grow and gain a competitive advantage in their services. Kokemuller and Elkins (2018) identify some of the primary reasons that drive international expansion to include the desire to expand and grow their operations. Global markets represent opportunities that companies can take advantage of and increase their revenue generation, gain new investment opportunities, reduce their costs of service, diversify, and even compete for new sales. Companies that explore international markets are able to improve their profit margins since they gain new customer bases that increase the streams of revenue to the company. Further companies could venture into this area as a result of the potential benefit of cost-saving that it represents. An example is where the company relocates its operations internationally and bases its plants next to the supplier of their raw material, decreasing costs of production. The prices of labor are also significantly lower in some international markets with a vast population base, motivating companies’ global expansion. Further in the competitive business world that companies ...
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