International strategies in the deployment of operations in more than one country
International strategies entail the deployment of operations in more than one country. Many firms decide to deploy and establish their scope of operations internationally based on enhancing growth and global market dominance. Through the use of international strategies, firms expand and integrate the economy of a country worldwide. Firms also enjoy various advantages that come from a global establishment. These advantages include competitive advantage, foreign investment opportunities, and access to talent (Rossum, 2017). Through international expansion, films can gain a competition high-ground over their rivals. Foreign investment opportunities are also enhanced due to the ability to develop assets in foreign countries. Internationalization also offers the opportunity of attaining global talents and skills, which increase productivity and efficiency.
Despite having significant advantages in the internationalization of a firm, various challenges discourage companies and films from globalization. Lack of informed decisions is one of the primary reasons why firms face challenges in the quest to deploy in foreign countries (Velocityglobal, 2020). Lack of information about specific foreign outline gets in the way of making crucial decisions in the expansion. Besides, legal compliance and regulation in foreign countries may also hinder firms’ flexibility and ability to operate feasibly. For example, the introduction of tariffs in the U.S may discourage foreign companies from establishing their existence in the country.
Businesses may also opt to deploy in countries that do not have tight rules and regulations for foreign companies. Lack of rules may come to an advantage or disadvantage to a company. The benefit is to enjoy non-regulated tariff requirements, quotas, and licensing(Carey, 2017). Countries with fewer tariffs ensure companies require fewer funds to operate and enjoy higher portions of their profits. However, there are risks associated with the establishment of firms in countries with relaxed business rules. Regulation deficiency means that companies are exposed to exploitation with no guaranteed protection (Fritz, 2017). For example, a country’s local authority may deny or decline a business deal or payment because there is no rule to protect the business against such, thereby leading to losses.