Pros And Cons Of International Collaboration

It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.

(1) Synergy creation: The businesses of both companies are famous and highly complementary to each other.

There may be several constraints placed on the business which may obstruct from fulfilling these purposes. Such constraints include, legal restraints, when working in various countries as one business the company will have to deal with different laws in order to function correctly, it may also have to deal with the politics of different countries and factor in any policies which may affect how the business can be run. Language and culture will have an effect on how the business is able to fulfil its purpose, if a multinational company has employees who speak several languages it could be difficult for them to work successfully,

The concept of internationalism is the idea of getting the best for your nation or nation state, even it being harm to another group.Because of this mindset many nations were able to achieve their national Interest goal for their country and further increase their strength . Although that may be the case on one side, but on the other side the ideology of internationalism can cause pain suffering and problems for other groups. This topics of internationalism have been intensely debated over the years with both sides coming to a stalemate in who side is right or not.The question that is asked is should nation and nation states have an obligation to do whatever is obligatory to reap the benefits of internationalism. Undeniably internationalism can lead to economic benefits for a country even so, the answer to this question is simply no. The bases abaft this answer are because of the perilous repercussions it can have on a nation. The weapon that is knowing as internationalism is one that will always end up harming and ravaging another nation, whether it’s through eradicating their way of life, culture or people and country internationalism will always cause harm.

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.

Internationalism should be pursued in order for the the world and its people to have to have lasting safety and security. With the world that people now live in internationalism should be the main focus to try and help combat against terror and violence. To try and make the world safe for everyone no matter the culture, ethnicity or financial state.

The lesson learned from this is that sometimes it is easier and faster reach a new market via joint venture, even though the profit will be less, but the company can save a lot of money in studying the new market trying to understand the new culture and how they purchase and also it can minimize the risk because there is a national brand supporting the new international brand, which gives confidence and security to the customers.

Also, internationalization or geographical diversification may lead to problems related to psychic distances. As the company gets more diversified, information flow will be harder due to differences in language, culture, level of education, political systems, foreignness and level of industrial development.

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

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.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

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

Reasons why corporations like PepsiCo. need to globalize their operations include a need for competitive advantage against rivaling companies, increase their economies of scale to lower their production and distribution costs in moving products into new and existing markets, entering new markets to increase brand image and brand loyalty, and to increase net earnings which can then be distributed as dividends for their stockholders.

• It takes time and effort to build the right relationship and partnering with another business can be challenging. Problems are likely to arise if:

The problem of managing alliances is the last but not the least one met in multinational companies. Obviously, companies shape their own organizational cultures when they are under the background of their national culture. On the one hand, alliances can offer their own advantages to a new company, which allow the company to capture new skills, new products and new markets quickly. On the other hand, they also bring their own initial management problems which will increase difficulty of problems in the