Internationalism

Internationalism

Reasons for targeting, operating and trading internationally:

·       Potential emerging market

·       Spread risks

·       Increase brand awareness

·       Growth in capacity and market share

·       Take advantage of economies of scale, experience curve effects

·       Develop knowledge and experience

Factors influencing attractiveness of markets:

Ø  Trade barriers- tariffs, quotas

Ø  Exchange rates

Ø  Size and growth of market

Ø  Competitive environment

Ø  Resource availability- capital, technology, labour

Ø  Legalisations

Offshoring: the movement of business activity (often production) overseas

Re-shoring: the movement of business activities back into its domestic country

FOR

AGAINST

OFFSHORING

Ø  Cheaper resources

Ø  Multi-skilled, cheap labour

Ø …