Why Do Firms Go International Business?


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The reasons for firms to go International could be classified under two motives:
1. Proactive motivators
2. Reactive Motivators

Proactive Motivators:
1. Increase Profits
2. Unique product offering in foreign markets
3. Technological edge
4. Exclusive information
5. Managerial urge
6. Tax Benefits
7. Economies of scale

Reactive Motivators
1. Competitive pressures
2. Over production
3. Declining domestic sales
4. Proximity to customers and ports

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