International Opportunities - Case Study Example

International Opportunities Despite the benefits of international diversification, some firms may not expand internationally due to the constraints of the international markets. As seen in the research conducted by Hoskisson, Hitt, Ireland& Harrison, diversification strategies allow companies expand internationally and pursue all possible opportunities in the external environment (307). However, expansion in the international market may not possible especially in the service provision industry.

Evidently, such companies cannot offer services to it huge clientele base. Additionally, companies in the service industry will also require more manpower, more capital and complex management structures to survive internationally. This is extremely tasking explaining why these companies opt to remain local actors. In the course of internationalization, firms prefer where business regulation laws are lax as they can benefit more if they need to test new products (Hoskisson, Hitt, Ireland& Harrison 310-12).

Availability of market will work positively for this company that aims at targeting a huge clientele base. A good example is the tobacco sale will work if the regulations are lax. On a negative note, firms may suffer if the regulations are lax, as they may have to pay for some financial risks. In the case where the currencies are not well regulated, the firms may suffer a great deal. The firm may, therefore, operate from losses. Worse still, this company may not get the required products to supply in other countries.

Political instabilities in other countries where they hope to venture may also cost the firm if the regulation laws are lax (Hoskisson, Hitt, Ireland& Harrison 307). Work CitedHoskisson, Robert., Hitt, Michael., Ireland, Duane & Harrison, Jeffrey. Competing for Advantage. London: Cengage Learning.2012. Print.