Internationalization, Steps and Process Objectives
1. Is internationalization an end, a consequence or a need for companies?
Nowadays, common reasons why firms internationalize are that they want to grow, to have new employees, resources and ideas. Many companies seek international markets for growth as they want to expand their businesses. Probably the most important reason for business internationalization is that many times the company can hire cheaper employees. Some companies go outside to locate the resources that are difficult to keep in their home markets. Also companies go outside if they want to expand their workforce and have new ideas.
2. Why go international? and Why not?
Companies go international for a variety of reasons, but the goal is typically company growth or expansion. Whether a company hires international employees or searches for new markets abroad, an international strategy can help diversify and expand a business.
But some questions to ask before internationalize a company are:
• Companies live to sell products and services to a market, therefore you should always search a market large enough to survive, and that will enable the company to grow which is the goal of most companies.
• For most sectors, the national market has declined in recent years (by reducing consumption, foreign investment and national public investment) and is more than likely that in the next 3 to 5 years even continuing stagnation, minimum.
• The trend in recent years is that markets are becoming increasingly global and borderless, due to free trade, greater mobility of goods and services, competition from large companies anywhere in the world, and all this driven by knowledge about international markets internet provides to any customer.
Consequently, unless the undertaking is a niche company with a local activity in Spain, which is not affected by the crisis, with a forecast of little competition in the future, the company should be addressed international development, either exporting or implanted in the
Nowadays, common reasons why firms internationalize are that they want to grow, to have new employees, resources and ideas. Many companies seek international markets for growth as they want to expand their businesses. Probably the most important reason for business internationalization is that many times the company can hire cheaper employees. Some companies go outside to locate the resources that are difficult to keep in their home markets. Also companies go outside if they want to expand their workforce and have new ideas.
2. Why go international? and Why not?
Companies go international for a variety of reasons, but the goal is typically company growth or expansion. Whether a company hires international employees or searches for new markets abroad, an international strategy can help diversify and expand a business.
But some questions to ask before internationalize a company are:
• Companies live to sell products and services to a market, therefore you should always search a market large enough to survive, and that will enable the company to grow which is the goal of most companies.
• For most sectors, the national market has declined in recent years (by reducing consumption, foreign investment and national public investment) and is more than likely that in the next 3 to 5 years even continuing stagnation, minimum.
• The trend in recent years is that markets are becoming increasingly global and borderless, due to free trade, greater mobility of goods and services, competition from large companies anywhere in the world, and all this driven by knowledge about international markets internet provides to any customer.
Consequently, unless the undertaking is a niche company with a local activity in Spain, which is not affected by the crisis, with a forecast of little competition in the future, the company should be addressed international development, either exporting or implanted in the