Why firms pursue international business

In addition, international talent may also improve innovation output within a company. Companies also choose international expansion to gain a competitive edge over their opponents.

For example, businesses that expand in markets where their competitors do not operate often have a first-mover advantage, which allows for them to build strong brand awareness with consumers before their competitors. International expansion can also help companies acquire access to new technologies and industry ecosystems, which may significantly improve their operations.

For instance, many firms are able to develop new resources and forge important connections by operating in global markets. Companies with multinational operations can also benefit from lucrative investment opportunities that may not exist in their home country.

For example, many governments around the world offer incentives for companies looking to invest in their region. Thus, U. The funding for the UN is influencing its operations. The United Nations promotes and strengthens democratic institutions and practices around the world, including by helping people in many countries to participate in free and fair elections.

The UN has provided electoral assistance to more than countries, often at decisive moments in their history. Both are considered non-member states of the United Nations, allow them to participate as permanent observers of the General Assembly, and are provided access to UN documents.

Begin typing your search term above and press enter to search. Press ESC to cancel. Skip to content Home Research Paper Why do firms pursue international business? Research Paper. Ben Davis June 1, Why do firms pursue international business? What are some of the common motivators for companies embarking on international expansion? What are the main motivations for going global?

What are the reasons for internationalization? How does a firm do internationalization? How does globalization affect internationalization? What is the difference between international trade and globalization? What is internationalization strategy? What are the challenges of global governance in the 21st century?

What are the problems in global governance? What do you think is the future of global governance in our changing world?

What is the role of UN in global governance? What are the weaknesses of the United Nations? This is one of the most important reasons for companies to expand internationally. Because the developing and emerging countries have large deposits of minerals, metals and land for agricultural production, the western multinationals eye these markets in order to get access to the resources.

This is the reason why many international businesses operate in Africa and South Asia where the humungous deposits of minerals and metals are attractive for the profits that these multinationals can make. Many emerging markets and developing countries do not have the expertise or the resources needed to tap their reserves of these minerals and metals.

Hence, they welcome the multinationals with open arms as it gives them royalties and other payments to grow their economies. As can be seen from the expansion of Vedanta and the South Korean steel company POSCO into India, the eagerness to tap the resources is one of the most important reasons for expansion.

Often, businesses expand internationally to offset the risk of stagnating growth in their home country as well as in other countries where they are operating.