ANSWERS: 1
  • All businesses must sink or swim, and their success is entirely based on demand. The demand for a company's going global is sometimes unavoidable; expansion means the company can stay afloat in a competitive market.

    Competition

    Two things remain certain in business: There will always be a supply and demand, and the suppliers will always compete with each other. This level of competition sometimes makes it necessary for a company to leave a certain unsuccessful area and try out a new one.

    Labor

    If a company is able to find labor in a market cheaper than its target market, the company will often "outsource" manufacturing, meaning it will acquire labor in other areas. A company will usually outsource in countries with lesser economies.

    Politics

    Sometimes the reasons for a company's international expansion is entirely political. If a market has become particularly unstable (riots, famine, violent dictatorships) a company will be forced to relocate.

    Technology

    All companies must evolve: new forms of industrial processing, packaging, preservation, and transportation are all factors in a company's evolution. An expansion to a foreign country hospitable to innovative technologies in industry will also play a part in a company's going international.

    Real Estate

    The price of factories, storage spaces, and corporate offices are all contributing factors for a company's decision to outsource. A move to a country offering cheaper space is sometimes a smart play.

    Initiative

    Companies like to take the initiative when expanding business. If a company is to learn a new market for its product may be on the horizon, good business practices would suggest the company should take the first step, thus becoming the leader in uncharted territory.

    Source:

    ISEdb.com: SEO and Localization: A guide to going global

    IT Business Edge: Is Going Global an Economic Imperative for U.S. Companies?

    More Information:

    USA Today: Going international easier, a lot cheaper than you might think

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