International Business & Ethics Flashcards

Flashcards about International Expansion

What are some drivers of international expansion?

Increasing foreign market demand, seeking new markets & growth opportunities, need for resources, and cost reduction.

How does increasing foreign market demand drive international expansion?

Companies expand internationally in response to customer needs in foreign markets or to follow clients that have globalized.

Why do companies seek new markets and growth opportunities internationally?

Domestic markets might be saturated, prompting businesses to seek new growth horizons.

Why might a company need resources as a driver of international expansion?

Companies may need specific resources, materials, or talents not available in their home country.

How does cost reduction drive international expansion?

Labor, production, or other operational costs might be lower in foreign markets.

What are other drivers of international expansion?

Diversification, competitive pressure, and government policies & regulations.

How does diversification drive international expansion?

Spreading business operations across different regions can reduce risks associated with reliance on a single market.

How does competitive pressure drive international expansion?

If competitors are expanding internationally and benefiting from it, it might prompt a company to also consider overseas expansion.

How do government policies & regulations drive international expansion?

Some countries offer incentives to attract foreign businesses, including tax breaks, grants, or eased regulations.

What are some forces of globalization that contribute to international expansion?

Technological advancements, liberalization of trade and investment, and market integration.

How do technological advancements promote international expansion?

The internet, communication technologies, and transportation improvements have made it easier for businesses to operate internationally.

How does the liberalization of trade and investment promote international trade?

The reduction of trade barriers, tariffs, and restrictions have promoted international trade.

How does market integration drive international expansion?

Formation of regional trade blocs and agreements (like the European Union) facilitate easier trade between member countries.

What are some other forces of globalization?

Convergence of consumer demand, global competition, mergers and acquisitions, and economic factors.

How does the convergence of consumer demand prompt international expansion?

As consumers become more aware of global brands and products, their demand for diverse products increases and become more alike.

How does global competition impact international expansion?

Companies now face competition not just from local businesses but from international players as well.

How do mergers and acquisitions enable international expansion?

Global mergers allow companies to quickly gain a presence in a foreign market.

How do economic factors influence international business?

Fluctuations in economic conditions across countries can drive businesses to seek more stable or lucrative opportunities elsewhere.