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Essay / The importance of internationalization in the era of...
In the era of globalization, internationalization is becoming more and more relevant for business strategies. All businesses look for opportunities to expand their markets. The main reasons for this are: continued growth, creation of value for shareholders, access to the profit pool, transposition of tax barriers, demonstration effects, diversification and maintaining competitiveness at long term. Globalization has created resources and organizations that provide a tremendous support platform for businesses to go overseas. The Internet, the WTO, low-cost communication technologies and increased knowledge of different cultures have made the path to internationalization much easier and transparent. Another thing that helps companies enter new markets is the same language. Nowadays, English, Spanish, German, Hindi and Russian are widely used, making communication between businesses in the same region easier. Companies want to grow regardless of their country of origin. More and more multinationals are appearing in emerging economies. Emerging markets have three underlying characteristics that are consistently relevant to designated countries. First of all, this is the absolute level of economic development of the country. It is generally measured by GNP per capita. Most countries with emerging markets fall into the lower-middle and upper-middle income categories. Second, it is the relative pace of economic development, which is indicated by the GDP growth rate. And the last one concerns the extent of the free market system. We can see that there are many emerging multinational companies in the TOP 100 largest global multinationals. The global market trend is therefore changing. Previously, most internationalization theories were developed only for developed markets. But nowadays we can adapt theories based on beh...... middle of paper ......it. Almost all of Europe depends on Russian gas supplies every winter. Today, EMNCs offer more advantages than ten years ago. I think it's even easier for EMNCs to grow for several reasons. First, developing countries have more hidden opportunities and less competition. Most countries with emerging markets have great development potential that EMNC can utilize according to its needs. Additionally, because the opportunities are “hidden” and the risk is high, the company does not need as much investment as in developed markets. At the same time, if a company manages to develop its own industry, the gains are faster and greater than in developed countries. Second, populations and territories are often large, giving companies the opportunity to experiment and try their products in many areas. In particular, we can bring together many developing countries into groups with similar characteristics..