INTERNATIONALISATION Flashcards
What is internationalisation
The process of business developing operations outside of the country in which it is headquartered
What could internationalisation include
Exporting to overseas markets
Manufacturing abroad
Offshoring parts of the production process
Selling abroad
Employing people overseas
Developing alliances with overseas partners
What are reasons for internationalisation
Economic growth overseas (opportunities)
Market development (product that’s successful in our domestic market, which we think will perform well overseas)
Benefit from synergies
Increasing competition or falling sales in home market (treats)
Market saturation (like apple expanding to china as most people in Europe and the US have mobile phones now)
Gain economies of scale and experience curve advantages
Improve access to supplies and suppliers
Compete against market leaders
Favourable environment (PESTLE)
Availability of government support
