International Expansion Essay

1035 Words Sep 24th, 2012 5 Pages
MGMT415
Unit 1 Assignment

International Expansion Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global. Some of the issues that can arise in the host foreign country could face as a result of a global expansion are provisions for the occupant of good health, decent education,
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The employees will likely not socialize with each other and they will have a low moral which leads to a slower production and smaller turnover. The employees are not satisfied with their jobs and the company can lose its competitive edge (Council, 2001). There are many political and economic issues that can arise with a global expansion but there are ways to address these issues. The political issues include but are not limited to the willingness of the new country to trade with the US and if the new country is politically stable. They also have to consider if the government will be involved a lot with the business and if there are existing tariffs, non-tariff barriers, trade restrictions, or bilateral trade agreements. The economic factors include but are not limited to the stability of the new countries economy and if it will support the product. They also have to consider if trade is a significant part of their economy and if the currency of the country is stable with the inflation rates and such. The per capita income as well as the distribution of income has to be sufficient in support of your product, meaning can the people of that country afford to buy it (How to, 2012). PPQ Parts has a plan to expand globally within Germany and Japan. They must know that they can face issues

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