Internationalization

[Name of the Institute]

Internationalization

Q1

The modern business environment can be characterized as a global entity, where organizations are no longer limited to their domestic markets. These companies expand to other countries so as to utilize the resources or any other strategic business advantage present in that country (Foley, 1999). In the contemporary business environment it is not uncommon for a company to have business operations in several countries simultaneously. In this scenario the most integral part of the international expansion process is the critical analysis of the environment and the laws of the foreign land (Livingstone, 1989). There are three main types of laws related to business, that a company must analyze before entering into another country.

Corporate Law

This is the most important form of the law, as it deals with the basis of interaction between majority of the organization's stakeholders such as shareholders, directors, employees, creditors, the community and also the environment. The company must analyze the basis of the corporate law of the country it wants to expand to, as it will have a direct impact on majority of its organizational decisions. Different countries have different laws regarding the organizational entity and how it must function; hence these details must be adequately analyzed.

Government Regulation Laws

The company must ensure that the government regulations of the country are harmonious with its organizational objectives. In the underdeveloped countries the governments play a volatile role in the business sector, and introduce inconsistent policies. Hence the business environment and the role of the government must be analyzed before entering another country.

Intellectual Property Laws

In this form of law the products and inventions of a particular company are safeguarded by the law, as the acts of copying or replicating of ideas is halted. The company must ensure that in the country they are investing in, a strict and effective intellectual property laws exist.

Q2

The Internationalization has become an increasingly common practice among the multinational organizations today, and the organizations must seek to proactively adopt this strategy to achieve competitive advantages (Reeves & Deimler, 2011). The firms with the view to achieve competitive advantages such as attaining cheap resources, access to wider markets or diversification; actively enter into new global markets. The modern business environment has presented several challenges for the organizations, making their ability to achieve elevated profits and success a very difficult task. The customers have access to numerous brands and types of products at variable costs, and they may choose to select any product as per their requirement. The element of cost plays a vital role in the success of an organization, as customers are no longer overly loyal to a particular brand. In this scenario there is an extreme level of competition in the industry due to the presence of numerous companies present in the market. Among other advantages the process of Internationalization provides the company with an opportunity to enhance its target market and increase the effective sales.

The process Internationalization allows the company to avail the cheap resources that are present in ...