Finance International Expansion Essay Example | Topics and Well Written Essays - 1000 words

Finance International Expansion - examine ExampleMajor differences exist in the economic, political, socio-cultural, technology, competitive and financial environments of different countries. These need to be interpreted into account in planning the overseas expansion.Expansion decision has to be made after straitlaced consideration of all strategic and operational issues arising from within world(prenominal) milleu. Decisions need to be made concerning a wider range of both Strategic and Operational Issues.Key Strategic Issues that need to be addressed allow assessing our high societys readiness to externalise which includes the suitability of your point of intersection or service for overseas markets and the extent of local variant required choosing the most attractive foreign market(s) and the best entry strategy to adopt international pricing, dispersion and promotion strategies organising and controlling our overseas activities.Operational issues include export paperwork and documentation legal and financial issues determination and managing overseas partners and so on and are ultimately transferrable into financial and legal consultancy fees and travel expenses.Whether the company intend operating through agents/distributors or establish its own overseas sales subsidiary, the burden of control-related activities and cost is heavier than at home making it much more difficult to monitor and control overseas activities. at that place are significant financial risks associated with doing business afield, including the risk of higher indebtness, risk of not getting stipendiary at all and currency fluctuations-related risks. Further, when going international we will need to be sensitive and sympathetic to the local political and cultural environments of different countries. That entails higher management and consultancy costs and will unltimately produce to elevated of cross-cultural and political analysis to the level of decision making tool. Th e competitive environment may be quite different from what we are used to at home. In whole, as a consequence of the above, international marketing is more costly and time consuming than domestic marketing and you will need to incorporate a long-term view to achieve sustained profitability. The Barriers US Computer Systems companies, especially medium surface enterprises, face a number of barriers or obstacles when going international. These may include Psychological Barriers including omit of international/global orientation short-termism product or technology rather than customer led mindset lack of commitment to international markets exporting seen as too risky, not for us or too much trouble the fear factor.Organisational Barriers including limited resources (financial and managerial) lack of knowledge of foreign markets lack of international experience lack of formal training in international marketing problems in finding suitable overseas partners ability to compete away fr om home.Operational Barriers relating to export documentation and paperwork language problems allowance delays and risks etc.Product/Market Barriers in the sense of overseas market demand particularities, i.e. that product or service may not be suitable for overseas markets without major and costly adaptation the product or service may not have a unique competitive advantage abroad further, problems in