DECIDING WHETHER TO GO INTERNATIONAL

Not all of the companies need to venture into foreign markets to survive.  For instance, many companies are local businesses that require to market well just in the local marketplace. However, companies that operate in global industries, where their planned positions in particular markets are affected powerfully by their total global positions, must think and act globally.  Any several factors might attract a company into the international arena. 

International competitors may attack the company's domestic market by offering lower prices or better products. The company may want to counterattack these competitors in their home markets to link their resources. Or the company  may  discover  foreign  markets  that  present  greater  profit  opportunities  than  the domestic market does. The company's domestic market may be shrinking, or the company might require an enlarged customer base to achieve economies of scale.  Or it might desire to reduce  its  dependence  on  any  one  market  so  as  to  drop  its  risk. At last, the company's customers may be expanding abroad and need international servicing.