In the current century, most companies have a target of going international within their various industries of operation. It is thought that most companies go international because they want to get access to numerous business opportunities that can enable them sell their products to a larger market. Moreover, others go international on the premise that most of the other business that have gone international have failed less times as compared to those that operate within their local markets. If the market sphere of customers is expanded then definitely the sales of the company is most likely to increase thereby resulting in high amounts of revenue.
Another reason as to why companies would want to go international is because of the need to improve their profit margins (Biggs, 2013). Once the companies are capable of exporting their products to other outside countries, they earn additional revenues to their accounts. Alternatively, others come up with strategies of establishing branches in foreign countries so that their operational costs are greatly reduced as compared to exporting the same products.
Others expand their business operations so as to get access to the ever evolving and improving business technologies. Most local markets are overcrowded with the same technology that most often results in decreasing profit margins.
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