What incentives influence firms to use international strategies?

Part one: Discussion question

Please respond to the following:

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  • What incentives influence firms to use international strategies? What are the three basic benefits firms can gain by successfully implementing an international strategy? Why?
  • Determine why, given the advantages of international diversification, some firms choose not to expand internationally. Provide specific examples to support your response.
  • 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.

Be sure to respond to at least one other student.

Part Two: Respond to Sharon Levius

Hello Professor and Class,

The biggest influences for any business to seek international strategy is money, all businesses go into business to make money and using the international strategy will help them achieve that. It is not bad; the company just need to follow ethical guidelines.

The three The basic benefits a firm can gain by successfully implementing international strategy are to find new customers/workers and give them the opportunity to build your business from the inside out. Teach the workers to be effective, encourage them to be productive, and reduce the turnover rate. Even though labor is cheaper internationally, make sure all the workers are treated fairly.

There is always saying to use made in America, help local business grow, support American business; but the reason businesses move is because of cheaper labor and they can make a bigger profit. They also move to other countries so that they can establish their business globally. Every item I use has “made in China” so we need to have more “made in America”.

I bought an airline ticket online several times and there was always someone from another country on the other end of the phone. They outsource the business to other countries. Businesses that outsource their jobs must be careful to treat their employees respectfully and with dignity. They must follow the guidelines for the environment.

Sharon

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