What incentives influence firms to use international strategies? What are the three basic benefits firms can gain by successfully implementing an international strategy? Why? Determine why, given the...

Running Head: INTERNATIONAL STRATAGIES FOR FIRMS.             1
INTERNATIONAL STRATAGIES FOR FIRMS.                     5
INTERNATIONAL STRATAGIES FOR FIRMS.
Table of Contents
Why firms to use international strategies:    3
Three benefits firms can gain by implementing an international strategy:    3
Why firms choose not to expand internationally:    4
Advantages and potential risks:    4
References    6
Why firms to use international strategies:
Firms are motivated to use international strategies or global strategies because international strategies have a lot of pros. They do definitely have cons as well but the benefits that they promise are worth taking the risk. Firms or businesses that implement the international strategies are controlled by home office. This strategy seems to spread the business in the international level and not just the local level. International strategies aim towards maximising efficiency and thereby decreasing the cost of the product as much as possible by the use of developed technologies like the internet. It also aims at the economies of scale and offers greater opportunities to utilize innovations developed at the corporate level or in one country in other markets. According to Tulung, (2017) hen a firm or a business implements the international strategy, the risk of the business to collapse decreases although it may result in the firm not getting any reach in the local market since the international or global strategies does not function in the local level. Implementing the global strategy or the international strategy is like selling your product on an earth that is flat, which implies, you sell the product in the exact same way in every country where you do business. And the home office is...