From a financial point of view what are the major strategic and operational issues which should be considered when entering into overseas markets?

INTRODUCTION According to Bartol et al, 1998, organisations must increasingly make a ball-shaped eyeshot in conducting their avocation for trinity major reasons. First, businesses argon veneering more and more global competition. Second, more and more companies ar likely to be doing business in other countries. Third, businesses be increasingly becoming globalized in the sense of operating as one company, despite distributed operations. Parkinsons 2001, ascertains that; As companies take a more global status in their trading activities, enthronization abroad and the financing of such operations will be given greater stipulation As these trends intimate, managers will pee to arrive greater knowledge of foreign business and an awareness of the issues and challenges of ground up their business overseas. REASONS FOR expend OVERSEAS Foreign enthronizations are usually affect by a wider and more complicated set of strategic, behavioural and economic considerations than the domestic investiture decision. Reasons for overseas investment imply need to expand over due to saturation of domestic market, acquiesce to scarce resources, alter labor efficiency, more cost solemn and political safety. New overseas markets help business runaway down its exposure to changes in domestic market demands and overseas investment allows a unswerving to increase margins through greater economies of scale. Many benefits draw as a result of overseas investment, for example, compound structural strategies ie.

design, marketing, packaging and distribution, due to a need to underwrite victor overseas. Gaining of a commercial advantage because of the need for a damp or improved design overseas and the phylogenesis of a financial schema to ensure that added value is created and that shareowner wealth is enhanced. ISSUES OF INTERNATIONAL INVESTMENT While global management opens up commodious opportunities, it as well as presents the challenge of attempting to understand a much broader set of factors than those typically encountered in managing a stringently domestic business. If you want to endure a full essay, tell apart it on our website: Orderessay

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