Why firms go international essay

This is the text of my keynote speech at the 34th Chaos Communication Congress in Leipzig, December

Why firms go international essay

Another main reason for firms to go international is the lower costs in foreign countries. According to the political and the employment environments, the labour is cheaper in Asia than in Europe or US, labour is cheaper in developing countries and less developing countries.

So many companies choose to own industries or form a joint venture with local firms in these countries.

Why firms go international essay

In one word, the ultimate goal for firms to go international is to make more money. Components of culture and how it can affect marketing activities? The average level of education in a society affects the interests and sophistication of customers.

For example, in a community in which a high percentage of potential customers have some form of post-secondary education, firms owners prefer to use more details and explanations while advertising or promoting products. As a part of culture, social organization is a way a society organises itself, how it consider kinship, status system, social institutions and interest groups.

For example, the role of women in a society, whether they were a decision-maker in shopping. A major interest group in area can also influence the society, such as oil industries in Texas. The marketing of a firm can be successful by building their advertising strategies on women, a specific interest group, or a leader who has the biggest influence in a community.

Social status is also a relevant factor: Knowing the income information of your potential customers can give the firm an edge on know more about customer habits and implement a successful marketing strategy. There are five dimensions in the Hofstede Framework: As for the long-term and short-term orientation, long-term oriented culture focus on saving for or investing in future while short-term oriented pay more attention on instant pleasure and quick result.

How to cite this page Choose cite format:May (This essay is derived from a keynote at Xtech.) Startups happen in clusters.

Why firms go international essay

There are a lot of them in Silicon Valley and Boston, and few in Chicago or Miami. "Would going international be the best growth option for Sumy pharmaceutical?

In this report, I have written both the ways of expanding their business and other ways of growing their business. Going through the companies SWOT and PEST analysis with the .

As we know that in an international business profit is one of the main reason for company to go international to earn more money/ profit than they do as a company does in a domestics market. Like in some cases where per cent of the total profit of a company is made in the foreign market.

1, Responses to “Newspapers and Thinking the Unthinkable” Why One Day Every Company Might Have 2 CEO’s «Dave Cunningham's blog Says: January 12, at pm.

Why do firms go Multinational? There are various reasons as to why a company decides to go kaja-net.com Dunning Eclectic theory or the OLI paradigm highlights the advantages of these multinational corporations going overseas. The gig economy is one of the reasons why companies go global.

Many companies are now hiring teams they will never meet in-person. Many companies are now hiring teams they will never meet in-person. The freelance economy can help you get projects done without the need to have employees in the same room as you.

Why Do Companies Go International? | Bizfluent