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 ?
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.
· 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.