Analyze the main reasons why companies decide to internationalize Assignment

Analyze the main reasons why companies decide to internationalize their activities - Assignment Example With the rush to globalize corporations on the increase, it is of great importance that the reasons behind this internationalization be analyzed. In the work of Rugman (2003), it is evident that corporations internationalize their businesses so as to remain competitive and relevant in the market. This form of networking is evident in the case of Chabros International Group that internationalized its markets so as to stay relevant in the tough economic times of the time (Farah, 2010). Additionally firms internationalize so as to fit in the current global economy (Czinkota & Ronkainen, 2007). Relationships between varying firms are considered as networks that require co-existence and relationship between the varying complexes. For instance, the manufacturing industries have to create close links with production, distribution as well as service provision. In this case, internationalization is inevitable if a firm has to remain in the market. Mathis, Rogmans & Albqami (2011) say that there are many risks in the market including the political risk. With the financial and political risks on the rise, notable the global crisis of 2007, and unrests in Middle East and North Africa respectively, Mathis, Rogmans & Albqami (2011) indicate that there was need to change the macroeconomic policies in UAE and Saudi Arabia to reduce the impacts of global crisis on the economy. In this instance, there is need for internalization of the management base of the investors in multinational companies so as to reduce the liability of foreign investors, and the need to incorporate local partners in their corporations. Cavusgil, Ghauri & Sinkovics (2009) argue that corporations face stiff competition in the domestic market. Internalization for their markets gives them a chance to devise policies that will keep them running in such touch economic conditions. Through setting market policies, corporations are able to react to unforeseen threats from their foreign competitors, and as a

Business Function Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Function - Essay Example A business entity chosen should also draw from how much personal liability is involved and the entrepreneur’s ability to raise the capital required to begin the business because each entity requires a certain amount of initial capital. The various types of business include, the sole trader or proprietorship and partnership, which fall under the unincorporated firms and the private limited company and the public limited company that are under the incorporated firms’ category. With this, this essay will delve into the different types of businesses and their definitions and will also describe the three different types of business ownership with examples where possible. Lastly, the essay will further focus on the factors that should be considered by an entrepreneur when starting a business. Ideally, determining the type of business structure that an entrepreneur should choose draws from the way in which the chosen organization will meet his/her needs. Additionally, the type of business structure that an entrepreneur chooses depends on whether they want to run the same on their own or with the help of partners and associates. The three main business types, namely sole proprietorship, corporations and partnerships are discussed below. In essence, the sole trader type of business is the simplest of the three as it is easy to start and does not require too much paperwork while in partnership business form, ownership is shared between partners that contribute towards the start of a business based on a common business idea that they might have had. Incorporation is the other business structure where a business becomes a legal entity in which the shareholders of the same do not become legally liable for the activities, debts, or responsibilities of the corporation. The sole trader type of business is the simplest of the three as it is