From a financial point of view what are the major strategic and operational issues which should be considered when entering into overseas markets?

INTRODUCTION

According to Bartol et al, 1998, organisations must increasingly assume a global persuasion in conducting their business for three major reasons. First, businesses argon veneer more and more global competition. Second, more and more companies ar likely to be doing business in other countries. Third, businesses are increasingly becoming globalized in the sense of operating as one company, despite far-flung operations.

Parkinsons 2001, ascertains that;

As companies take a more global perspective in their trading activities, investiture overseas and the financing of such operations will be given greater consideration

As these trends imply, managers will pee to have greater knowledge of international business and an awareness of the issues and challenges of desktop up their business overseas.

REASONS FOR INVESTING OVERSEAS

Foreign enthronizations are usually propel by a wider and more complicated set of strategic, behavioral and economic considerations than the domestic investment decision.

Reasons for overseas investment imply need to expand due to saturation of domestic market, assenting to scarce resources, improved production efficiency, more cost businesslike and political safety. New overseas markets help business play down its exposure to changes in domestic market demands and overseas investment allows a firm to increase margins through greater economies of scale.

Many benefits draw as a result of overseas investment, for example, enhanced structural strategies ie.



design, marketing, packaging and distribution, due to a need to ensure victor overseas. Gaining of a commercial advantage because of the need for a damp or improved design overseas and the development of a financial strategy to ensure that added value is created and that shareholder wealth is enhanced.

ISSUES OF INTERNATIONAL INVESTMENT

While international management opens up vast opportunities, it as well as presents the challenge of attempting to understand a much broader set of factors than those typically encountered in managing a strictly domestic business.

If you want to guide a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper