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Why do companies go international?

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Question added by Emmanuel Wamweta , production supervisor , Tembo Steel Rolling
Date Posted: 2016/06/03
Sharath Nair
by Sharath Nair , Senior Executive , Synthokem Labs Private Limited

Increase Sales

Improve profits

Expand business

Creating larger image

Take advantage of profitable markets

To improve Product portfolio

Emmanuel Wamweta
by Emmanuel Wamweta , production supervisor , Tembo Steel Rolling

Profit motive- lucrative marketds fot instance Middle East, China etc may prompt a firm to go international.

Reduce depedence- companies may want diversify away from single domestic markets to capture other markets.

Economic instabilities such increased inflation rates, unstable exchange rates, depressions may force companies to look at other potential markets.

Political instabilities such as civil wars may force companies to look for safer markets.

Restructive domestic market may stiffle & force companies to look for less stringent markets.

Global convergence of consumer tastes & preferences may lure companies to go international.

Exploiting market opportunities arising in other markets is yet anothe reason why companies go international marketing.

Overproduction & surpluses at home would necessistate to creare a vent for excess production may force companies to  go international.

Stiff competition in domestic in domestic market may also firce companies to look for other markets that have less rivalry.

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