What is the importance of international
entrepreneurship?
Answer:
International entrepreneurship
It
is the process fo an entrepreneur conducting business activity across the
national boundaries. It may consist of exporting, licensing, opening, sales
office in another country.
Importance:
It
sales of company is declining in domestic market, they can sell products in international
market considering demand of product in other country market customs.
1)
Increased
sales & profit:
When the entrepreneurs are not able
to earn profit or demand for their product decreases in local market they can
sell their products in foray market where life cycle of product is in favorable
condition E.9. Apple, HP, Dell, Sony, Samsung.
2)
Lower
manufacturing cost.
If the company manufacturing cost increases by
manufacturing product in home country, than company can opt in the production process
in host country, on the contrary of the company is in no profit or on loss
situation that company can choose in any option. E.G MC Donald’s
3)
Advantage
of cheap labour:
Quantity & quality of labour is
one of the major challenges for every business, if the labour is cheap in
foreign countries that company can out source required labour if organization is
into foreign operations.
4)
Utilization
of talent & managerial competence:
When business are not able to get
required talented work force in country, they can get the activity outsourced
or hire host country employee which has give birth to concept of expatriation.
5)
Growth
opportunity:
An entrepreneur whose care business
strategy is expansion and diversification of business, international business
is one of the primary platforms to achieve these objectives.
6)
Expansion
of domestic market:
International business coursing
domestic market to expand beyond national boundaries. When the domestic market
has been fully tapped than company can go in for expansion of business to market
their products in the international market their products in the international
market.
7)
Globalization
of customers:
It refer to when customers in
country prefer purchasing foreign products then
domestic company have to go in for internationalization of business to keep in pace with competition to attract customers.
Tata international begin to operate in
international (begin) market after entry of foreign competitors in induction market like ford.
8)
Globalization
of competitors
International business increases the opportunity not only
for the survival and growth but also motivates companies to face competition
from global entrant s in market, which in turn leads to growth of market, pursing
global scale efficiencies act.
9)
Pay
offs of international business:
International business improve image
of the company in domestic market and attract more customers in domestic
markets and attracts to internalization of business. E.G Ranbaxy.
10)
Customer relation management:
Internationalization of business with
teaches entrepreneurs how to cultivate habit of customers relation management.
It’s also most helpful in improving product with the view of customer
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