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Why go International?

Overview

Drivers of International Trade Competitive advantage of International Trade Problems in International trade

To achieve higher rate of profits Expanding the production capacities beyond the demand of the domestic country Severe competition in the home country Limited home market

Political stability vs Political instability Availability of technology and managerial competence High cost of Transportation Nearness to raw materials Availability of quality human resource at less cost

Liberalization and Globalization To increase market share To avoid tariffs and import quotas

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