Internationalization essay

Document Type:Essay

Subject Area:Economics

Document 1

Internationalization is a process in which a company gradually increases its international involvement; it is also an act of growing enterprise involvement in global markets. Notably, most companies go international for many reasons, and companies generally go international because they want to expand and improve operations. One of the reasons for internalization in corporations is competition for new sales, where the goal of increased profit margins is the urge to increase sales. Organizations do so even if the operators in the company are satisfied with the level of revenue, as an international extension can improve overall revenues (Wang & Wang, 2010). Expansion of companies internationally is often about gaining a presence in foreign markets. Examining if the objectives and goals of the company envisions internalization can also tell how ready the company is to internationalize (Team, 2012).

Sign up to view the full document!

The quality and quantity of capabilities, skills, and the availability of resources is another considerable factor (Schlegelmilch, 2016). A firm that is ready for internationalization, has potential support in creating the global relationships (Schlegelmilch, 2016). Agreeably, to determine whether a firm is ready for internationalization, one should assess the skills and potential, the goals and objectives, and the support of the firm. Employees who understand different cultures and speak different languages increases the connection with a broader base. At times it happens that the products that do very well locally, may have a higher demand internationally (Cavusgil et al. The company can analyze its strengths, and weaknesses of the product that they are planning to deal with, to determine if it is worth it (Schlegelmilch, 2016).

Sign up to view the full document!

They can eliminate to come up with the best product that may have a good market locally and globally (Cavusgil et al. Therefore, evaluation of products and services intended for export is essential in determining readiness to internationalize. Marketability is also another method of assessment and it entails a lot of information. Saudi Telecom Company has also cut down its mobile phone roaming charges by 63 percent in some countries, after the introduction of new rules by the Kingdoms Telecom Regulators. Saudi Telecom Company had to offer favorable services to its customers after going beyond its local borders. The firm had to form a lasting business relationship with international markets and invested in the countries mentioned above. The company is service a large number of customers, and seeks to expand globally via evaluation and studying of potential investment opportunities (Cavusgil et al.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable

Similar Documents