The Importance Of International Business Strategies
The following paper will address and explain international business strategies and the various ways companies use business strategies to achieve international success. The paper will explain the benefit international business strategies create for companies and the importance for companies to use the correct strategies according to their overall company strategy.
Overview of International Business Strategies Companies and individuals must have a plan in place and overall strategies when pursuing expansion into international territories. The international business strategies companies select should create long-term growth and value or profits for many years into the future (Fung, 2014). Companies that want to survive in this …show more content…
Understanding all associated risk with expansion is a great international business strategy that companies should research to see how any potential risk will affect the company and will any of the potential risk take away from the revenue generated from the international expansion. The main risk associated with international global strategies is the main investment to expand in a foreign country not knowing how the business venture will turn out (Alessandri, & Seth, 2014). The investment of expanding into the global business market could take away income from shareholders, executives, managers, and in extreme cases bankrupt the company into financial ruin. Companies that fail within the international business market create bad publicity, hurting their reputation and at times the trust within domestic markets (Alessandri, & Seth, 2014). This could cause stock prices time plummet on a global scale and decrease the wealth among shareholders, employees, and the