Most companies are moving their business operations to foreign countries by going global. They take their business overseas for various reasons. These companies rely reactive or defensive approach to stay ahead of the competition. There are a few of them or aggressive proactive approach taken to achieve the same purpose. Most of them choose to adopt both approaches to avoid a reduction in competition. In order to remain competitive, companies are moving as fast as possible to secure a strong position in some of the world's major and emerging markets with products designed specifically for the needs of people in these areas, which are planning to create. Most of these global markets and attract new capital investment of companies with very good incentives. Some of the reasons for the reaction or defensive world to go are:
(1) trade barriers
(2) the demands of the customers
(3) globalization of competitors
[19,459,001 (4) the regulations and restrictionsin the case of trade barriers, companies are moving from the export of its products to manufactured overseas in order to avoid the burden of tariffs and quotas, and the policy of the local purchase and other restrictions that make exports too expensive to overseas markets. Companies respond to customer requests for effective operations and ensure product reliability, and / or solutions to the problem of logistics. Most foreign customers, who are seeking access to suppliers to ask the domestic supply to stay in order to enhance production flow. Companies usually follow this request to avoid losing work. The globalization of competitors, companies realize that if they leave the companies abroad too long without challenge or competition, their investments or foreign operations in the global market may be solid so that the competition will be tough. Therefore, they try to act quickly. "The government may be the home of regulations and restrictions that are very uncomfortable and expensive, which limits expansion, encroachment in most corporate profit companies, and make their costs can not be controlled. Hence the reason for companies to move to a different market environment with few foreign restricted operations. Causes proactive or aggressive global go are:
(a) growth opportunities
(b) the economies of scale
(C) incentives
(d) resource assessment and cost savings
many companies will prefer to invest excess profits for expansion, but sometimes they are limited because of the maturity of the markets in the region. therefore, they seek new markets abroad to provide these growth opportunities. therefore, these companies, as well as to invest the excess profits, also try to achieve maximum efficiency by employing an untapped human assets and capital, such as resource management, machinery and technology. companies and seek economies of scale in order to achieve a higher output from the spread of the large fixed costs to lower the cost per unit level. They, too, want to make the most of the OEM to take advantage and spread research and development costs rise over the product life cycle. Some of the developing countries that need to improve and develop through capital infusion and skills, technology voluntarily offer incentives such as fixed assets, and tax breaks, subsidies and tax breaks, and human capital, and lower wages. It seems that these attractive incentives for these companies because of the increase in profits and reduce risk. WARNING: The transfer of profits and foreign exchange risk as a result of instability in the leadership of these developing countries must be taken into account in the negotiations. Access to raw materials and low operating costs in the finance, transportation, and lower wages, lower unit costs, and the strength of the attractive terms of access to resources and cost savings. Most companies are moving their headquarters abroad to avoid high taxes their countries, each other and the costs associated with the business process in those countries.
companies need to develop strategies and design and operating systems, and is also working with people, different companies, and countries all over the world in the form of a strategic alliance to ensure the sustainability feature competitiveness. Usually it formed management functions and global governance as a result of the prevailing conditions and developments stable and unstable current in the world. There are a small number of countries to benefit from these companies, but when they become aware of companies that are being used, and then must figure out how that can be useful in these different cultural environment in order to make a lot of profits.
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