Understand and Critically Evaluating Entry Modes of Businesses in International Market

1131 Words 5 Pages
Introduction

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, their focus is also increasing profit, and to achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become stronger than the other competitors and also to lower their expenses by getting resources they need at
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Introduction

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, their focus is also increasing profit, and to achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become stronger than the other competitors and also to lower their expenses by getting resources they need at lower cost. Recently most of business’s activities are affected by changes that occur globally; this is a result of their operating activities with foreign markets, most of companies’ export goods, move resources with other country and also many companies get suppliers from foreign countries. In addition these trading activities of businesses outside the country can help the economy grow.
The aim of this paper is to understand and critically evaluate entry modes of businesses in international market; this research question was chosen to figure out how an enterprise decides to engage in international market and whether that choice is a good or bad decision for the future of the company. The first part of the paper will explain in the details
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