What incentives influence firms to use international strategies? What are the three basic benefits firms can gain by successfully implementing an international strategy? Week 7 Discussion – International Opportunities

Which incentives are there to encourage firms to adopt international strategies? How can international strategies be implemented successfully by firms? Why? Identify the reasons why some companies choose to not expand internationally, given all of the benefits that international diversification offers. Your response should include specific examples. Internationalization is a common goal for firms. They may want to establish their business operations where there are no regulations. Use specific examples to illustrate your discussion of the potential benefits and risks associated with such an approach.
International Opportunities – Week 7 Discussion
The Content
Incentive simply means extra benefits corporations and organizations offer for work done. Companies might be motivated to adopt an international strategy by these rewards. There are many types of rewards. Some incentives can be used to persuade companies to adopt global approaches over others. One incentive that businesses may consider is the potential to increase the product life cycle. Businesses are encouraged to use an international strategy by allowing them to secure a larger market share and keeping them in the mature phase of the marketing cycle. This incentive also leads to increased sales, fewer errors and better product safety (Masucci, et al. 2020). There are other factors that can encourage companies to consider an international strategy. These include increased access to raw materials and scarce resources, wider consumer reach to emerging markets and economies as well as opportunities for global integration and use of advanced technologies. Companies are motivated to develop an international strategy due to increased access to scarce resources and raw material. This is because the supply chain can be safe and reliable, which can increase company performance and productivity. Cont…
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