Answer to Question #168171 in Marketing for Sunny

Question

With all the problems facing companies that go global, explain why so many companies are choosing to expand internationally. What are the advantages of expanding beyond the domestic market ?

Answer 1

Reasons to go international

·        Companies would wish to go international to Increase sales and profit that may not be available locally.

·        Short-term securities like evading complexities within local markets like price fluctuation are enjoyed by companies that go international. On the other hand, international companies enjoy long-term security earned by acquiring savings and international stock market shares.

·        Engaging in international trade Increase innovation to companies. Extended base of customers in the international market contributes finance that can be used to conduct product development.

·        Companies may also choose to go international to learn and acquire new skills. Education is realized through partnership of other international markets.

·        Government Incentives and other advantages are sometimes extended to local companies that would wish to engage in external trade mainly to promote exports.

Advantages

·        International trade enables companies gain access to new markets in other nations other than domestic markets.

·        International trading helps the companies to reach other nations with their own localized talents skills that enhance diversification of the company’s operation regarding the exchange earned from local talents.

·        An Increased growth of business is realized by companies that participate on global trade.