Rana has a Masters Degree in Business Administration and is pursuing a Doctorial Degree. She has been teaching online for over a year. She has a strong business background.
An International Expansion Success Story
The international expansion of a business is when a business takes the borders of their market outside of the country in which it was originally established. In this lesson, we'll take a look at how international expansion can benefit a business.
Ben developed a recruiting company for information technology jobs in the United States and was doing very well. He noticed many of his recruits came from South America. Ben decided to have some of his employees travel to different locations in South America and open a few branches there. Prior to doing so, the employees spread the news through social media, word of mouth and online advertising. Ben also made sure to check if the locations were well-populated, if the businesses in the area were doing well, and to review any laws for doing business in each of the countries. He did his homework before going international. Five years later, Ben has become a very successful business owner and CEO. He's developed many good relationships with customers, employees, and partners overseas. He's also filled many IT jobs. This has given Ben and his company a good name internationally and back home.
Ben and his team work hard to meet company goals. He appreciates his team's opinions and includes them in every important decision that he makes. His team supported him to expand globally. They helped him do research on the project and even traveled abroad to check the location and talk to the public.
An error occurred trying to load this video.
Try refreshing the page, or contact customer support.
You must cCreate an account to continue watching
Register to view this lesson
As a member, you'll also get unlimited access to over 84,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.
Get unlimited access to over 84,000 lessons.Try it now
Already registered? Log in here for accessBack
Benefits of Expanding Internationally
There are many benefits of expanding your business internationally, such as:
- Business expansion can help the company increase revenue
- Offer more job opportunities
- Aid the financial situation of the foreign country
- Build good relationships with partners overseas, which helps create more business
- Continue business in the event that business at home has slowed down
- Build diversity within the company
- Create a good local and global image for supporting communities
- Companies may be able to hire employees for a lower rate, which saves money
- There may be lower costs of doing business overseas
- Expand by building relationships with nearby countries
- By hiring globally, the company is open to bringing in new ideas and concepts
Ben's recruiting company was doing well, and he noticed many of his recruits were coming from South America. He decided to expand his business to those countries, but before doing so, he did his homework. Ben made sure business was doing well in those areas, and he reviewed their laws for doing business. He also had his employees get the word out through social media, online advertising, and word of mouth. Now, his company has a good name internationally and locally. He has developed good relationships with customers, employees and partners overseas.
International expansion in a company is when a business takes the borders of their market outside of the country in which it was originally established. International expansion for a business is ideal if the business has done their due diligence and made all the arrangements. There are many benefits including increased revenue, building relationships abroad, creating a good global image, creating more jobs, expanding the company, building diversity within the company, and bringing new ideas to the business. Other advantages are that the new branches can be backups in case business is slow at home, and money could be saved and employee costs reduced by maintaining the business overseas.
To unlock this lesson you must be a Study.com Member.
Create your account
Register to view this lesson
Unlock Your Education
See for yourself why 30 million people use Study.com
Become a Study.com member and start learning now.Become a Member
Already a member? Log InBack
The Benefits of International Expansion in Business
Related Study Materials
Explore our library of over 84,000 lessons
- College Courses
- High School Courses
- Other Courses
- Create a Goal
- Create custom courses
- Get your questions answered