Big World Smal World

Topics: Economics, International trade, Marketing Pages: 2 (450 words) Published: May 29, 2013
Big World-Small World
Grantham University

Big World-Small World
When a company decides to expand globally there are numerous things to scrutinize about the process. Moving forward means understanding the stumbling blocks that come with the expansion. For instance, a few of the disadvantages of going global are increased cost. With a company abroad there are increased operating expenses for company networks to connect to the home office, travel for personnel to home office and business meeting and ventures even company cell phones for those who need to be in constant contact with the office and essential personnel. The existence in a foreign country also creates brand new standards of business that must comply with the country you’re in. Training of new employees and retraining of the current staff; time and money are in a constant transition. International trade, delayed payments even additional production, packaging cost can interfere with a company’s available cash line. The advantages of moving abroad can strengthen a company by increasing their exposure within the country. And encourage them into friendly competition with the country's homegrown businesses. Due to the international product market, a firm will work harder to have a better product and improve on its quality to have an advantage with the consumers. International company could have lower labor prices, faster growth, more customers, and a greater market for sales, which will increase their overall profit margins. However, while moving overseas would have great advantages, there are still challenges that a firm would have to overcome. To a degree, a business would have some difficulty with communications and their company network. One would even worry about the changing value of currency. Physical and or cultural barriers can also hinder a business, at times a business may be seen as too political to do business with...
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