These are posts posted by two students. I have ordered two pages ( one page for each post). Please write if you agree or disagree with their post. Each of the posts has the questions they have answered
What incentives influence firms to use international strategies?
International strategies incentives influence firms to obtain new opportunities in international markets.
Increased demand for U.S. products in a foreign country makes an investment war off foreign competitors.
International strategies companies become multinationals to secure resources.
Firms move production internationally lower production costs.
What are the three basic benefits firms can gain by successfully implementing an international strategy? Why?
Increased market size.
Greater returns on major capital investments or on investments in new products and processes.
Greater economies of scale, scope, or learning; and competitive advantage through the location.
Why? The primary reason for investing in international markets is to generate above-average returns on investments. Also, firms expand economies of scale in manufacturing operations. Firms can establish products abroad with the same or similar production facilities.
Determined why, given the advantage of international diversification, some firms choose not to expand overseas. Provide specific examples to support your response
The complexity in problems managing diverse international operations, multicultural environments, potentially rapid shifts in the value of different currencies and the instability of some national governments.
As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response.
I read Tesla and Elon Musk tried to manufacture electric vehicles in China but, the Chinese government fears Tesla was a threat to intellectual property and security risk and attempted to block manufactures of electric vehicles in China. However, China is ahead of the U.S. clean air initiative. Therefore, sales soared for Tesla vehicles in Asia proposal eventually was accept Tesla operates in China.
Civil and international unrest or war deemed volatility in national government. For example, I travelled to the Philippines to work at upscale hotel armed guards with dogs, the mall entrants, and exist armed guards. Why? The threat of drugs and corruption regulation mandated by the Philippines government. Also, private assets are controlled by the international government, while the population lives in dire poverty.
Question No 1: What incentives influence firms to use international strategies? What are the three basic benefits firms can gain by successfully implementing an international strategy? Why?
Answer: There are a variety of incentives used to allow businesses to use multinational strategies. Incentives are as follows:
The ability to prolong the life cycle of the product
Better access to scarce capital and raw materials
More opportunities for penetration into global operations
More ways to make use of emerging technology
Expanded entry in developing markets to more customers
There are three main advantages to an organization that employs an international approach. These benefits are:(1) better consumer reach,(2) economies of scale and increased learning resources,(3) geographic and lower cost position advantages such as labour and electricity. The Reason is the international approach helps the company to manufacture large quantities in such a manner that the cost per unit of the commodity reduces, enabling the company to have a large market share. Strategic and reduced cost location advantages allow a corporation to produce and assemble products in a region where it has a strong market share of the commodity or where labour is cheaply available in plentiful quantities (Rossum, 2017).
Question No 2: Determine why, given the advantages of international diversification, some firms choose not to expand internationally. Provide specific examples to support your response?
Answer: Despite the many benefits that international diversification provides to a business, there are occasions when a company may choose not to grow internationally. There are many explanations for this occurrence, one of which is the burden of foreignness. This definition aims to understand how diverse market markets will make competition on a foreign platform risky and costly, thus raising the company’s liabilities. Some of the reasons behind international obligation include the fact that the tastes and expectations of consumers in other countries are not often known. The marketing team of the company can struggle miserably to try to draw consumers on an international platform because of the different cultures and perceptions. Another underlying aspect that could discourage a business from entering the international market is the various conditions and expectations of host governments to compete in their markets. In order to reinforce the former towards the latter, some policymakers would be more lenient with local businesses than foreign ones. In addition, several developing countries perceive the existence of multinational corporations as neo-colonialism. These governments would not build a friendly market climate for the company (Alexander, 2016).
Question No 3: As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response.
Answer: The upside of the position of business facilities in regions where the rules on business control are loose is that the less regulation, the more revenues a corporation can generate. There is a high chance that taxes in the area will be low, contributing to higher income. Fewer oversight guarantees greater flexibility for manoeuvre for the company in terms of production, distribution, and selling of products. However, there are still several problems with the position of a company where business laws are loose. The industry would have to dive further into its wallet to protect itself from unfair competition, although if the rules were tighter, the government might have covered a company that is engaging in the equal competition (Alexander, 2016). For more information on International Markets check on this: https://en.wikipedia.org/wiki/Globalization
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