What factors should a company review before deciding to go abroad

1. What factors should a company review
before deciding to go abroad?

2. Competing on a Global Basis
Global competition is
intensifying in more
product categories as new
firms make their mark on
the international stage.

3. Factors drawing companies into the
international arena

4. Some international markets present better profit
opportunities than the domestic market

5. .
The company needs a larger customer base to
achieve economies of scale

6. Reduce single market dependency

7. .
The company decides to
counterattack global competitors
in their home markets

8. Customers are going abroad and require
international service.

9. Risks of Going Abroad

10. The company
might not
understand
foreign
preferences and
could fail to offer a
competitively
attractive product.

11. The company might not
understand the foreign country’s
business culture

12. The company might lack managers with
international experience

13. The company might
underestimate foreign
regulations and incur
unexpected costs.

14. The foreign country might change its commercial
laws, devalue its currency, or undergo a political
revolution and expropriate foreign property.

15. .
Some companies don’t act until
events thrust them into the
international arena

16. The Internationalization Process
Establish sales subsidiaries
Independent
Representatives
Establish production facilities