Growth opportunities within international markets are a key reason for firms to want to internationalize its business. Growth within businesses means increased profit from expanding internationally which is very important for different firms. A few of the drivers for the internationalization of business include improving global education and a global talent pool, E-commerce, homogenization of culture and consumer demands, knowledge sharing, and the rapid and extensive global communication. All firms, whether small or large, in all different countries are steadily becoming global or are trying to become global.
The first driver is improving global education and a global talent pool, which is vital in having talented and successful employees …show more content…
Usage of technology such as smart phones, logistics, global transportation, and credit cards all help firms do business through the Internet no matter their location. The Internet allows businesses to connect with people globally in a more convenient manner. Businesses are able to create their own websites to showcase their services for anyone in the world to access. E-commerce allows businesses to extend its markets and manage their operations in a better manner. E-commerce is cheaper so it allows businesses to cut on their costs when creating and expanding their markets. Since the creation of the Internet the world has come a long way in the way it conducts business and communicates with …show more content…
Each business has it’s own culture and set of values that it goes by in their place of operation. Cultures differences vary among the location of the business such as the United States of America or China. Different countries have varied cultures that they are accustomed to. The values that a business has include what they believe is ethical behavior, honesty, social concerns, and integrity within their company. Businesses with common culture and values are more likely to integrate with each other than with less in common businesses. Regarding consumer demands it is necessary for a business to meet these demands in order to have customers that purchase their products and are satisfied as well. Therefore, the globalization of businesses “significantly accelerates cultural homogenization and convergence toward a common set of cultural traits and practices”(Reisinger, pg.17). Knowledge sharing is the next driver that will be discussed. Knowledge sharing includes a transfer of knowledge on policies, techniques, technology, philosophies, cultures, values, and services to other businesses worldwide. Knowledge sharing is vital among employees in businesses especially international businesses. In our economy today, “generating new knowledge and using it to produce new products or services is crucial to maintain or even accelerate competitiveness of companies”(Gorazd,
The first driver is improving global education and a global talent pool, which is vital in having talented and successful employees …show more content…
Usage of technology such as smart phones, logistics, global transportation, and credit cards all help firms do business through the Internet no matter their location. The Internet allows businesses to connect with people globally in a more convenient manner. Businesses are able to create their own websites to showcase their services for anyone in the world to access. E-commerce allows businesses to extend its markets and manage their operations in a better manner. E-commerce is cheaper so it allows businesses to cut on their costs when creating and expanding their markets. Since the creation of the Internet the world has come a long way in the way it conducts business and communicates with …show more content…
Each business has it’s own culture and set of values that it goes by in their place of operation. Cultures differences vary among the location of the business such as the United States of America or China. Different countries have varied cultures that they are accustomed to. The values that a business has include what they believe is ethical behavior, honesty, social concerns, and integrity within their company. Businesses with common culture and values are more likely to integrate with each other than with less in common businesses. Regarding consumer demands it is necessary for a business to meet these demands in order to have customers that purchase their products and are satisfied as well. Therefore, the globalization of businesses “significantly accelerates cultural homogenization and convergence toward a common set of cultural traits and practices”(Reisinger, pg.17). Knowledge sharing is the next driver that will be discussed. Knowledge sharing includes a transfer of knowledge on policies, techniques, technology, philosophies, cultures, values, and services to other businesses worldwide. Knowledge sharing is vital among employees in businesses especially international businesses. In our economy today, “generating new knowledge and using it to produce new products or services is crucial to maintain or even accelerate competitiveness of companies”(Gorazd,