Expansion: internationalization of business

Solo disponible en BuenasTareas
  • Páginas : 3 (613 palabras )
  • Descarga(s) : 0
  • Publicado : 19 de agosto de 2012
Leer documento completo
Vista previa del texto
EXPANSION: Choosing the right country and the right region in the country
For any reason imaginable companies that have grown to certain extend will need to start thinking about expansion, and inthe globalized world we live on that possibility is relatively easier to accomplish than in past times.
But an error in choosing the right country can prove to be fatal or at least a hard blow forthe company to cope with so companies that desire to follow that path will need to be very meticulous in analyzing data and doing their own research so they minimize the risks.
But this isn’t easybecause of several factor for starter some of the data that countries made available are made by mathematical methods that in most cases help the country to get a better grade (PIB for example).
Sowhat companies should do? Well there are several independent analyses that can be used to contrast the information from different sources and there is the possibility of the onsite visits (sometimes anexpensive option).
Also several countries that look for foreign investment give companies advantages to grow in their market in exchange of their capital and giving work to the population of thecountry this kind of incentives need to be taken into account with the data of the country itself adding to that the foreign trade advantages one location may bring for instance if you put yourself in afree trade area and produce locally in it you will be able to move your products without tariff to the countries that are members of the agreement so by getting into that market you are actuallytargeting a much wider one.
Even with all of those consideration companies will eventually decide a country to move capitals and invest but then they face another decision to make, which region or cityof the country to locate themselves.
This will be dependant of several factors and every country is slightly different for each for example in the legal factor some regulations are applicable for...