International Expansion

Masters
Essay
Business
Pages 6 (1506 words)
Download 0
1. Compare and contrast the main theories of international expansion by means of examples from global organisations present in your case studies or other sources, highlight the strengths and weaknesses of these theories.
According to Richardson (2007), there are four main theories of international trade…

Introduction

Using a common standard, which was gold in early times, a nation is wealthier if it possesses more gold. It receives gold for the products it imports and pays for its imports with gold. Therefore, the more it exports over those it imports, the more gold it will possess. The problem with this theory is that it excludes the fact that in some cases it is good to import. And if you completely refuse to import, the population would have to do with some consumer items (Richardson, 2007). In terms of business organizations, this theory was used by many companies in Japan after the second world war, to increase exports. Toyota started operations in the 1930s and was supported by the Japanese government during WWII because of the company's capability to produce trucks for military applications. Because of the scarcity of domestic resources at that time, the Japanese government stopped almost all imports. By 1945, after the allied forces won the war, Toyota was given permission by the US military to start peacetime production. In 1957, Toyota set up a sales office in Hollywood and started selling Toyopets and Land Cruisers (Toyota, n.d.). However, even for Toyota, the purist application of the mercantilist theory was not effective. The design of Japanese cars were not those desired in the new markets they opened up in other countries. ...
Download paper
Not exactly what you need?

Related papers

International Business Strategies in Action. International Expansion of RyanAir in India.
The company plans to use its existing low cost no frills model as a part of a low cost strategy to capture the target market. RyanAir is a UK based airline firm established in the year 1985 and has grown presently to a mammoth organization having a fleet strength of 272 aircrafts (RyanAir, 2011). RyanAir mainly operates flights to various destinations around Europe and is one of the most…
Assesment of Wal-Mart's international expansion strategy
These locations where Wal-Mart has a well-established or newly-established presence were the product of joint ventures, foreign direct investment for wholly-owned Wal-Mart cash and carry stores, and through intense acquisition strategies. Wal-Mart in China Wal-Mart chose an export-led growth strategy in China as well as foreign direct investment for wholly-owned Wal-Mart stores. One of the main…
An international expansion plan for Ferrero Rocher
International business expansion strategy has become one of the profitable and important business growth strategies of several leading multinational business organizations. There are several advantages of international business expansion. Organizations can increase its market share through the help of global expansion strategy. In addition to this, multinational organizations can develop potential…
An international expansion plan for Nestle
At the same time, these business organisations have also been facing certain challenges, such as increasing competition from local as well as global business organisations, which has limited their ability to exploit the prospects existing in the potential foreign markets. Correspondingly, the business organisations engaged in conducting operations in the global context are required to develop…
Finance International Expansion
Major differences exist in the economic, political, socio-cultural, technology, competitive and financial environments of different countries. These need to be taken into account in planning the overseas expansion.…
International Expansion
Using a common standard, which was gold in early times, a nation is wealthier if it possesses more gold. It receives gold for the products it imports and pays for its imports with gold. Therefore, the more it exports over those it imports, the more gold it will possess. The problem with this theory is that it excludes the fact that in some cases it is good to import. And if you completely refuse…
International Expansion of "Burger King" into France
Among the different factors identified by this model, we have singled out three that have a particular impact on the success of Burger King. Further PESTLE information is available in Appendix 1.…