Last updated: February 26, 2019
Topic: BusinessCompany
Sample donated:

#10)  What are the major problems associated with collaborative arrangements between international companies? What are possible solutions to these problems in investing in other countries? Do you feel foreign investment is a prudent move for most companies wishing to expand their business? Why?

A few of the major problems associate with collaborative arrangements between international companies include is culture barriers, ethics, and corporate goals. The cultural barriers can be remedies by placing representatives at the forefront of the foreign companies to ensure their investments are done properly. In the business sector, a representative can play as a spokesperson at meetings or conferences. The need for foreign investments is for company expansion in the international sector. International investments create ground for growth within untapped markets and create jobs for foreigners in the business’ areas. Companies can help mold their influence on the economic development of the potential markets within that country.

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Many international investors recognize the potential of growth in foreign countries because they can develop the concepts of business. For example, a well-known cellular company is expanding their presence in small countries in order to gather their market shares earlier. Their investment in connections has created substantial growth throughout their campaign. If others were to follow suit, the investments could create a 300% return compared to previous missed opportunities.  More than not, a company’s expansion in foreign markets strengthens their global identity. We should be aware of how important a global identity is in the international business world. Companies with a strong presence in other areas tend to have the most influence on the progress of the country’s business market.