Reasons for Companies Going Internationally

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Reasons For Companies Going Internationally

Castealia D. Cook
Southern Wesleyan University

International Management MGMT 5363
Dr. Franklin Pruitt
January 27, 2011

I. Introduction
II. Reactive Reasons
a. Definition
b. Globalization Of Competitors
c. Trade Barriers
III. Proactive Reasons
d. Definition
e. Economies Of Scale
f. Growth Opportunities
g. Resource Access And Cost Savings
IV. Conclusion
V. Referemces

Reasons For Companies Going Internationally

Globalization is here to stay. Companies choose to go international for the following simple and compelling reasons: * To build more brand and shareholder value
* To add more revenues sources and growth markets
* To leverage existing corporate technology and supply chains * To award more franchise owned businesses in the home country by becoming global Companies pursue internationalization strategies for a variety reasons. Some motives are strategic in nature, while others are reactive. An example of a reactive motive is the need to serve a key customer that has expanded abroad, and on the other hand an example of a strategic or proactive motive is to tap foreign market opportunities or acquire new knowledge. Companies have a vast majority of reasons for going international such as on the reactive reasoning side there is globalization of competitors and trade barriers. On the proactive reasoning side companies go international because of economies of scale, growth opportunities, and resource access and cost savings. “There are a variety of factors that have been driving the spread of globalization across industries. Although their impact and pace has varied according to type of industry, these have been the dominant triggers for change from local to global (or at least regional) industry structures” (Segal-Horn, 2002). Reactive Reasons

Reactive comes from the word reaction....
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