(a brief self test)

1. Reasons for Internationalization
2. Company Internal Prerequisites
3. External Framework



1. Reasons for Internationalization

  • Proaktive Reasons
    Free production capacities, costs advantages abroad, government promotional measures, market potential abroad, interest and tax-advantages, competition advantages, economies of scale, synergy-effects, prestige, extension of the product life cycle, risk distribution

  • Reaktive Reasons
    Balance of a demand decline on the home market, laws and restrictions in the home country, avoiding of trade obstacles, internationalization of business partners and/or competitors



2. Company Internal Prerequisites

  • Are you and the rest of the decision makers in your company standing hundred percent behind the internationalization target?

  • Are you willing to deal with foreign behavior patterns and business conducts?

  • Do you have sufficient free capacity for possible necessary product modifications, the settlement of additional foreign orders and to fulfil the service expectations of your new international customers?

  • Do you have sufficient professional qualified personnel to handle different credit terms, specification formats, documents etc.

  • Are your products suitable for export?

  • Are you able and willing to bear the necessary advance costs (maybe for more than three years)?



3. External Framework

  • Where are promising markets for your products?

  • Are you allowed to export your products into those markets?

  • Which competitors are active there already?

  • How high is their turnover?

  • What pricing policies do they apply?

  • What short-, medium- and long-term turnover can you obtain there?

  • Welchen Umsatz könnten Sie dort kurz-, mittel- und langfristig erzielen?

  • Which problems do you have to expect: customs duties, not-tariff trade barriers, purchase resistance of local customers, language …?