Saturday, October 19, 2019
This is International Management Essay Example | Topics and Well Written Essays - 500 words
This is International Management - Essay Example Emergence of economies like India and China that offer skilled labor at comparatively cheaper rates has led to business organizations relocating business units like back office operations to these nations where they can get the desired quality level at cheap rates. In addition to this firms have also been using international expansion to reach out to new and potential markets. The restriction of trade barriers has also made investments in overseas destinations easier for firms. Examples of firms pursuing international strategies include Lenovo Computers, Wal-Mart and others that have successfully entered into new markets and established a formidable foothold in those markets. International expansion strategy is recommended in circumstances where domestic markets for an organization starts getting saturated and the company has enough internal resources and expertise to manage business in an international level by being able to sustain its core competence areas in new foreign markets. It should also have sufficient financial resources to sustain the business in foreign locations. Favorable government regulations and a congenial political, economic, sociological environment are also essential pre requisites for a firm to enter into a foreign market (Organization for Economic Co-operation and Development, 2007, p.24-38). Regionalization Contrary to globalization regionalization involves an entirely different perspective in which firms restrict themselves to specific regions and confine their businesses to those regions and devote their focus solely towards a particular region.