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International Strategies

International Strategies refers to the various plans, policies and processes that are to be adopted in order to expand our business internationally that is across nations. It can only be used when a company has a plan of expansion outside its own territories or the business boundaries where it is already operating.

When it comes to the process of globalization then the expansion of business across boundaries has a lot of considerations and strategies have to be developed at the international level like:-

a. Availability of Resources – When the products have to be sold in the international market then instead of spending on the transport of the raw materials, certain places have to be searched in the particular from where the raw materials are easily accessible and hence the resources when procured in-house would lead to the benefit of the company as the transportation costs involved could be easily eliminated.

b. Legal and Governmental Policies – It is also said to be an important consideration as the governmental laws and policies governing the trade and the foreign direct investments are very important as in case the laws are very strict and there are huge taxes & duties levied on the various products then investing in those countries where the taxes are more, the profitability is very meager is of no use.

c. International Standards – When a product is being launched in the outside market which is said to be international then certain criteria’s set by that country in terms of the standards have to be kept in mind and followed so that there is no violation.

d. Competitive Drivers – It is also to be determined that the product is unique and there exists very less competition in the foreign market for their product so that the companies can then accordingly invest in them. Even if competitors are there then also the product should offer unique features which are not available in the product of others.

e. Availability of labour and the manpower – It is also essential to analyze the manpower availability in low cost so that low salaries or wages are being paid and maximum returns in terms of revenue and profitability is obtained.

f. The cost of the infrastructure and various other fixed costs when low is a major driver for the marketing development and product expansion. The costs should be low to the extent then even if they are taken out; the revenue reaches the maximum point or the level.

g. Value of Exchange Rate and the currency – The currency of that country also is a crucial criterion for the business development. The currency of the country if strong then the international strategy says and advises to buy of the raw material and the products from the self country so that they are purchased on a lower rate and finished product is sold at a much higher rate. In case the currency of the investing country is weak then the raw material and manufacturing should be done in the investing country and selling should be done in the country where the currency is strong.

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