Expanding Business Internationally

Running a business is not a motionless challenge; everything is dynamic and business owners should be faster to forecast the possible circumstances that may happen in the future, not just inside the operations of the organization but also in relation to its external factors such as the industry, new competitors, prices of supplies, and economic standing.

In my perspective, I think International Business and Trade is better than domestic business because of several reasons. First, IBT is more diverse and complex, hence, it is anchored in greater opportunities. Second, having the transactions occur across the world, the products and services have a relatively higher quality standard because of the broader framework of resources, skills, and manpower. Third, since there is geographical limitations in domestic business, this means that there is a wider market in IBT. And lastly, with the help of high technology in the present generation, this is a great advantage for IBT to grab in order to expand. Even if the business has global links, the transactions would still be conveyed quickly. Despite the fact that IBT is more expensive to conduct and a larger capital investment is needed, if it was smartly implemented, the chances are higher for the business to grow bigger.

Companies enter into international business and trade because of their desire to grow the business and harness the advantage of accumulating higher revenue. This happens because first, at times, labor and resources are cheaper in other areas of the world, thus, they proceed with the manufacturing activities in that certain nation; and second, consumers tend to patronize internationally known products than domestic ones. Moreover, the business can engage into diversification and create new industries when they consider the preferences of the people in various areas where the business is situated. For example, the business can provide products or services that are not present in a certain country.

In addition, entering international business and trade has lots of benefits not only to the business organization but also to the nation. Even if there are barriers such as rules and laws which differ between countries and cultural differences, the advantages surpass these problems if they are deliberately resolved.

On the other hand, every way you take on business has its own risks, thus, of course, you have to make a solution on how to overcome it amidst all the possibilities that you may face. Thus, businesses must know a lot about the problems and challenges in IBT because these will serve as a guidance whenever they plan in engaging with international market. Having enough knowledge regarding the problems would prepare the business before jumping into the risks and consequences.

It can also assist in determining what countries to invade and will help in forming strategies and analyzing what industry to enter. Being informed will discourage the possibilities of future loss that the business might experience. Thus, the greater the information that business have regarding the problems and challenges in IBT, the more articulate they will be in making decisions.

Would you take the risk of expanding internationally?

The answer is based on your resources and your strategies.

• Do you have the right people to work for you?

• Are your plans concrete or is full of band-age solutions for serious problems that might arise?

• Are the information you have enough to understand the entirety of the expansion?

• How much are you willing to risk for that?

This big decision won’t go well with such minimal effort; it entails deep research and study the possibilities first before pursuing a great investment in another country.