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What factors should a company review before deciding to go abroad
1.
What factors should
a company review before deciding to go abroad?
2.
Competing on a
Global Basis Global competition is intensifying in more product categories as new firms make their mark on the international stage.
3.
Factors drawing companies
into the international arena
4.
Some international markets
present better profit opportunities than the domestic market
5.
. The company needs
a larger customer base to achieve economies of scale
6.
Reduce single market
dependency
7.
. The company decides
to counterattack global competitors in their home markets
8.
Customers are going
abroad and require international service.
9.
Risks of Going
Abroad
10.
The company might not understand foreign preferences
and could fail to offer a competitively attractive product.
11.
The company might
not understand the foreign country’s business culture
12.
The company might
lack managers with international experience
13.
The company might underestimate
foreign regulations and incur unexpected costs.
14.
The foreign country
might change its commercial laws, devalue its currency, or undergo a political revolution and expropriate foreign property.
15.
. Some companies don’t
act until events thrust them into the international arena
16.
The Internationalization Process Establish
sales subsidiaries Independent Representatives Establish production facilities
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