You are on page 1of 1

1. Why do firms pursue international strategies? Explain.

Since globalization has been increasing for the past decades, big or even smaller firms cross the
national borders and be able to do business abroad. Companies make use of international strategies
because it helps to think or make of a plan that will expand their business not just locally but also
worldwide. In order to make the expansion successfully, the company must understand that using
international business strategies can strengthen their consumer base and be able to increase their
profitability. Businesses pursue this kind of strategy since it allows them to cut or avoid the need to invest
in staff and facilities abroad. Dealing with an international strategy which typically focuses on exporting
products and services to foreign markets, will be advantageous to companies because it requires the
least amount of overhead. They are given the opportunity to cut unnecessary cost whereas the said
strategies only includes small local manufacturers that export resources to larger business abroad. Firms
uses international strategies because it leads to lower needs for centralized quality control while getting
rid of requirements to adapt activities to individual countries.

You might also like