Advantages And Disadvantages Of Going International

Exporting has become a very important business strategy nowadays. In order for firms to expand to the international market, and also to maintain and grow their share of market in whatever industry they are in, depending on their goals and objectives, any company must at least explore this possibility. A few and important advantages might come into place, in that they can extend their sales potential of their existing products, increasing margins through a larger customer base. Also, these small to large businesses can consolidate by gaining global share of market, they can reduce their dependence on their existing markets,

Sales can be increased by entering, creating, or targeting fast growing markets, and profit can be increased by lowering the cost of goods, and/or increasing revenue. And by entering foreign markets a company can follow its customers abroad, attack in a competitors home market, use foreign production to lower cost and protect that market, bypass certain political issues, acquire technology and know-how, and geographically diversify their market to increase profits,

Education is a never-ending learning process that has always been a piece of our life. As education is a building block in our lives, we are eager to put profoundly into our education. Good education will lead us to the bright future. With the fast advancement of public opinion, we have entered an era of information explosion which the necessity of studying abroad has turned into a developing pattern among youth. Most of the students feel that studying abroad is better than studying in local universities. As the saying goes, “the grass always looks greener on the other side of fence.” In this way, I believe that considering abroad have extraordinary points of benefits.

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

Based on Tata Group’s experience, we can see the advantages and drawbacks of going international as follows:

The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.

Globalization can be defined as ‘international integration’, which can be described as the process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, and political forces (dictionary.com).

McDonald’s as we know is the biggest multinational-corporation in fast-food industry. McDonald’s is a symbol of American power and hegemony just like Coca Cola and Nike which its operations is all around the world. And how McDonald’s could successfully entering global markets ? the key components is its standardization in all McDonald’s outlets in the world known as QSC&V (Quality, Service, Cleanliness, Value). You can see and feel the same burger quality, same fast service, cleanliness of restroom and the same price in all McDonald’s outlets in every country. McDonald’s also made a strong relationship with supplier because this is another key success, every supplier which supply

While targeting the international market segments, the company has availed the benefit of low wage rates and cheaper raw material costs, available in some regions of the world. This has helped the company in reducing its operational costs and maximizing profits, hence enabling the company to more effectively compete in the market. Moreover, this strategy has given the company, a competitive edge over its competing firms. One of the reasons, for which the company is currently targeting to the international market segments, is the saturation of the domestic markets that is forcing the companies to explore new avenues and to develop new markets around the world. One major advantage the company has, over other competing firms, is that in most of the cases they have an edge over other firms in terms of technology. This technological advantage has helped the company to develop products that are more effective.

If the product is not doing good in the home country, why we should try to go global? May be some boss may think the foreign country will be adopting the product better compare to the home country, and I think this is wrong. The Product is the company’s core.

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

When external marketing becomes increasingly more important and successful for the business, they will begin seeking new sources of growth and profit. New countries serve as new markets, thus international marketing begins. International Marketing is approached by concentrating product and promotional strategy to a given foreign market. Furthermore, an international marketing firm has polycentric orientation with emphasis on product and promotional adaptation in foreign markets whenever necessary. They make strategic decisions that are tailored to suit the cultures of the foreign countries. The company may establish an independent foreign subsidiary in each and every foreign market it services ­ such efforts are also called multi-domestic

Increase Sales: - if a business succeeds in the US, going international will likely improve the overall revenue. Approximately 96% of the world’s population lives outside of the United State and 90% of the world’s population do not speak English, that suggest that customer is global and if a business has to look beyond the end of the domestic market, you have real upside potentials

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become