By now, everyone (except me!) figured out that globalization of business provides tremendous opportunities to those firms that have international capabilities.
Companies tend to start embracing international opportunities because:
- Customers in other countries order their products direct from the vendor. In this way, internationalization is “demand driven” by customers and the vendor becomes an “accidental international business” as they began to support international customers. This may lead to the firm developing specific products, services or marketing programs for those international customers.
2. Companies have internal staff that recognize international opportunities:
Managers who have lived abroad and learned foreign languages or are particularly interested in foreign cultures are more likely to investigate in international business opportunities. …. For example, managers entering a firm may already have had some international business experience and may use this experience to further the business activities of their new employer
Special knowledge about foreign customers or market situations may be another proactive motivation. Such knowledge may result from particular insights by a firm, special contacts an individual may have, in-depth research, or simply from being in the right place at the right time (e.g., recognizing a good business situation during a vacation trip).Czinkota, Michael R.; Ronkainen, Ilkka A.; Gupta, Suraksha. International Business (p. 357). Cambridge University Press. Kindle Edition.
3. Competitive pressures. When a firm sees their competitors moving into international markets, then it is likely important to also move into those markets.
4. Opportunity and looking for new markets and places to grow the business. This is probably a version of #2 above.
With #2, above, we see the dependency on staff who have international skills. From an employer’s perspective, potential new hires who have international experience will be significantly more attractive to the hiring manager than those who do not have international skills. And this is likely true even at companies that are not yet “international” – but who see opportunities for growth in the future, and who may be dependent on working with suppliers and vendors who are already located offshore.
Note – I plan to eventually write a review of the International Business text.