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International Management

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Submitted By btugah
Words 2686
Pages 11
Divine Word University

Faculty of Business and Informatics Business Studies Department

Name: Brian Tugah
Subject: BS 424: International Management
Topic: Understanding the International Business Environment
Lecturer: Tabian Ambang

Why International Businesses are expanding their operations into less-developed countries?
Today, the world is becoming smaller and smaller and it is more now like a one community. The force behind how the world is going today is because of technology and globalization. Rapid changes in technology have caused communication to be faster through internet, email and telecommunications. Through technology, faster means of transportation has also been developed. Globalization on the other hand is breaking cultural, political, social and country boundaries which presents opportunities for international businesses to go global, thus weaving national economies together (McFarlin &Sweeney, 2003).
To continue, this essay is going to outline some factors on why international businesses are moving into and establishing and carrying out their business operations in less- developed countries. The reasons or factors given in this essay are from my own view, but I am supporting them with case studies and some other reasons from different authors.
For a start, I believe that the reason why international businesses expand to other parts of the world outside of their domestic environment, especially to less developed countries is because of two things. It is the pull and push factors that causes them to move and expand to other countries. By push factors, I mean that there may be some reasons an organization is forced out of its their domestic environment and by pull factors, I mean that there may be some reasons or factors in other domestic environment of other countries that attracts or pulls the organization from the other

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