Question

Not all companies go international by first exporting, then using contracts, and then investing in other markets as they gain international experience.

13-1. How (if at all) do you think a company’s product influences the process of going international?

13-2. How (if at all) will technology affect the process of going international? Explain  

Please do not copy and past other same answers from here or any other answers on the web. Please type your answer no handwriting. thank you

Answer 1

Answers:

1. How product can influence going global:

The products can influence going global in many ways.

• The first & foremost thing is season. The product may not be suitable in all the seasons in a country. For example if we are producing umbrellas & taking the business globally, there are some countries that may experience rainy season at different times in a year & it may not be the same rainy season everywhere when our country is having rainy season.
• The demand for the product may start to reduce after the busy period in which case we have to find some other country where the demand for the product would be more rather than simply waiting for slump in sales.
• There can also be cultural barriers. The particular product may not match the tastes & preferences of the people of the country where they are exported. This again can influence the decision of going global or not.
• The readiness of the market for the product is another deciding factor. The product can’t enter a saturated market or a market with too many competitors.
• The price of the product can also have an influence on the decision of going global. The product may be priced differently at the home country & when going globally must be priced in such a manner that it doesn’t create loss for the company & at the same time people in the other country does not feel that they have been charged more for the product.

2. Influence of technology on going global:

Influence of technology on going global is beneficial in the following ways:

• Companies that have gone globally technological has flourished in the market when compared with its competitors.
• Technology has helped the company to establish their products in many locations & effectively disseminating ideas & products to the employees & the customers worldwide.
• When a company wants to use technology globally they must also ensure that they can pay cheaper wages & little or no taxes.
• Innovative technology can also help in going for new designs. The more advanced the technology the high the quality & quantity of products or services.
• Technology has also helped in easy communication across the globe by using email or any other devices.