Lakhasly

Seek opportunities for growth through market diversification.Chinese appliance maker Haier established operations in the United States, partly to gain competitive knowledge about Whirlpool, its chief U S rivals.Develop economies of scale in sourcing, production, marketing, and R & D. For example, Airbus lowers its overall costs by sourcing, manufacturing, and selling aircraft worldwide.o Be closer to supply sources, benefit from global sourcing advantages, or gain flexibility in the sourcing of products.French computer firm Groupe Bull partnered with Toshiba in Japan to gain insights for developing information technologyRetailer H&M gains new product ideas by following fashion trends around the world Serve key customers that have relocated abroad.

Seek opportunities for growth through market
diversification. For example, Harley-Davidson, I K E A, H&M.
• Earn higher margins and profits. Often, foreign markets are
more profitable.
• Gain new ideas about
products, services, and
business methods. For
example, G M refined its
knowledge for making small,
fuel-efficient cars in Europe.
Retailer H&M gains new
product ideas by following
fashion trends around the world
Serve key customers that have relocated abroad. For
example, when Toyota launched its operations in Britain,
many of its suppliers followed suit.
• Be closer to supply sources,
benefit from global sourcing
advantages, or gain flexibility in
the sourcing of products. For
example, Apple sources parts
and components from the best
suppliers worldwide.
• Gain access to lower-cost or
better-value factors of production.
For example, Sony does much
manufacturing in China.
Develop economies of scale in sourcing, production,
marketing, and R & D. For example, Airbus lowers its
overall costs by sourcing, manufacturing, and selling
aircraft worldwide.
• Confront international competitors more effectively or
thwart the growth of competition in the home market.
Chinese appliance maker Haier established operations in
the United States, partly to gain competitive knowledge
about Whirlpool, its chief U S rivals.
• Invest in a potentially rewarding relationship with a foreign
partner. French computer firm Groupe Bull partnered with
Toshiba in Japan to gain insights for developing
information technology