Companies expand internationally to access new markets, achieve economies of scale, reduce costs, secure resources, diversify risk, and respond to competitive pressure. The decision to cross borders is driven by a combination of push factors (home market limits) and pull factors (foreign market opportunities).
Why Do Companies Expand Internationally? Firms expand across national borders for a mix of strategic, economic, and competitive reasons. While each company's situation is unique, the motivations can be grouped into five broad categories: market-seeking, efficiency-seeking, resource-seeking, risk diversification, and strategic response to competition. Key Takeaways The five primary drivers are: market access, cost efficiency, resource security, risk diversification, and competitive response. Push