4.2.1
Internationalisation
Assessing Internationalisation
Assessing Internationalisation
Internationalisation can give businesses greater opportunities.


Advantages of internationalisation
Advantages of internationalisation
- Accessing international markets gives businesses access to a larger market of customers which can increase sales revenue and profit.
- Accessing international markets can reduce a business’ risk in case demand in the home market declines rapidly following a change in tastes and fashions.


Exporting
Exporting
- Exporting allows a business to access international markets by selling products abroad.
- For example, Foxconn export to markets such as America and the United Kingdom which allows it to access international markets.


Licensing
Licensing
- Licensing allows a business to access international markets by providing overseas businesses with a license to sell and produce its products in that country.


Alliances
Alliances
- Alliances allow a business to access international markets through working in partnership together to share risk.


Direct investment
Direct investment
- Direct investment allows a business to access international markets through investing in facilities, such as a production centre, abroad.
Attractiveness of Internationalisation
Attractiveness of Internationalisation
Various factors affect a business choosing an international market to enter.


Size of the local market
Size of the local market
- The market’s growth rate and size must be considered as a large or growing market will be more attractive.


Political stability and culture
Political stability and culture
- The political stability and culture of the country in which the international market is located must be considered as this can affect the complexity of entering the market.


Local competition
Local competition
- Local competition must be considered as this can affect the likelihood of a foreign business being able to access the market with success.
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
Jump to other topics
1Exploring Business
1.1Features of Business Organisations
1.2Organisation of Businesses
1.3Business Environment
1.3.1External Influences
1.3.2Political & Legal Change
1.3.3Economic Environment
1.3.4Social & Technological Environment
1.3.5Lifestyle & Technological Environment
1.3.6Corporate Social Responsibility
1.3.7The Competitive Environment
1.3.8Innovation
1.3.9Risk & Uncertainty
1.3.10Porter's Five Forces
1.3.11SWOT Analysis
2Marketing Campaigns
2.1Marketing
3Business Finance
3.1Sources of Finance
3.2Financial Planning
3.3Financial Statements
4International Business
4.1Globalisation
4.2International Business
4.3International Economic Environment
4.4Factors Affecting International Business
5Principles of Management
5.1Management & Leadership
5.2Theories of Motivation
6Business Decision Making
6.1Business Principles & Practices
6.2Quality Management
6.3Human Resources
6.4Documents & Business Decisions
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