International Marketing - Session 3:

Why do(nt) companies go international? List of potential barriers and stimuli

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Activities of your national/local public sector agencies established contacts with overseas clients
An important customer asks you to supply to other subsidiaries
Export markets are proactively targeted by other members of the company
Management myopia: Your management only focuses on local markets
One of your employees comes from another country and believes that your product/service
might be interesting in his or her home country
One of your global accounts ask for participation
Piggybacking: Your company is asked to be the subcontractor to another firm which made the
country or export decision
Several governments have set up multilateral trade agreements
The exchange rate is currently very favorable
The initial costs of going abroad too high
There are strong communication improvements (internet etc.)
Transportation facilities have improved tremendously
World economic trends such as the economic growth of the BRIC countries lead to an increased
consumption in these countries
You are physically or psychologically close international customers
You believe that there is no demand abroad for your products/services
You dont have contacts abroad
You experience declining profits in domestic market
You experience difficulties in distribution
You face a lack of financial resources
You face increased competition in the domestic market
You face increasing product development costs
You face many national controls and trade barriers
You face problems of red tape and documentation
You face some serious language barriers and/or linguistic problems
You fear facing various kinds of trade impediments
You feel that you have a lack of business education
You have a hard time obtaining excellent market information
You have a significant over production or excess capacity
You have a unique technological competence or a unique product
You have difficulties in foreign marketing
You have problems at understanding of cultural differences
You might obtain tax benefits
You notice that you lack specialist expertise
You suddenly receive an order from abroad
You want to extend sales of seasonal products
You want to increase your profit and/or turnover

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You want to obtain economies of scale

Your clients went international and pull a business abroad
Your company is active on a worldwide market (by definition, such as airline companies)
Your domestic market is small and saturated
Your local competitor goes abroad
Your management does not have sufficient time
Your management perceives international business to be too risky
Your manager absolutely wants to go abroad because he or she wants to show that he or she is
successful.