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Ridyah and Dubai

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Submitted By grafwal2
Words 642
Pages 3
#2. Companies have to consider a wide array of factors before investing in internationalization of their firm. Companies focus their decision on 4 main factors including: strategic considerations, location decision factors, ownership mode decisions, and the decision-making process. Strategic considerations include the identification of high growth potential markets in the Middle East. Location decision factors include the market potential due to proximity of affluent economies, the governmental regulations that oversaw and restricted a specific area, the quality of life for employees should the company establish in that area, and the physical infrastructure to support implementation, sustainability, and eventual growth. Environmental risk was also of consideration but was done on a case-by-case basis and wasn’t a key driver of any decisions. Ownership models were determined by either entering or not entering joint-venture ownership with local investors. The decision making process is of high importance to the parent company to ensure it has done its due diligence and research on the aforementioned factors before investing. The most important set of factors was that of strategic considerations. Without a plausible reason to enter a Middle East and North African (MENA) market, the company has no ground to investigate location or partnership. Companies must find an area and market where profitability is most likely, then research the location and ownership factors. Strategic consideration includes the argument that internationalization is key as it supports strong global client relationships through local client bases; making entry to MENA more attractive through strategic planning. Market-seeking considerations are of the utmost importance because they identify a market with potential, provide insight into attainable resources and firm development, and generate a

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