Companies are drawn to expand internationally for several reasons, including seeking better profit opportunities through a larger customer base, reducing dependence on any single market, and countering global competitors. However, international expansion also carries risks if a company fails to understand foreign customer preferences, business culture, regulations, or lacks managers with international experience. When expanding globally, companies typically progress from no regular exports to using independent representatives to direct sales subsidiaries and eventually establishing foreign production facilities.

2. Factors that can
draw companies into
International arena

3. Better profit
opportunities

4. Need for larger customer
base

5. To reduce dependence on any one
market

6. To counterattack global
competitors

7. Customers require international
service

8. Government policies encourage
Globalization

9. Exports
13% of GDP in 2009-
2010
17% of GDP in 2013-
2014
BOT Deficit
8% of GDP in 2009-
2010
11.5% of GDP in 2013-
2014

10. Risks

11. • Failed to understand foreign
preferences
• Might not understand foreign
country’s business culture
• Underestimated foreign
regulations
• Lacking Managers with
International experiment
• Change in economy and political
issues

12. Internationalization process

13. No regular export
activities

14. Export via independent
representatives

15. Establishment of one or more sales
subsidiaries

16. Establishment of production facilities
abroad

17. Image Credits :
flickr users
Dennis Jarvis
Alex currie
WorldofArun
Salah Maraashi