Which sort of products is more amenable to going international by small and new firms? Why?
Answers
Explanation:
Small American companies, which already account for a fifth of United States exports, are increasingly taking the next step to becoming global businesses: they are setting up operations overseas, not just shipping their goods abroad.
A decade ago, such an evolution was unthinkable at most small companies. Overseas operations were the domain of the Fortune 500 corporations, while small companies kept production close to home. And even now, the small manufacturer - the sort of company that employs 200 people in a one-story factory in an industrial park - is expanding abroad reluctantly
Today, some smaller companies are building factories in foreign markets, but most are making less costly moves at first, like arranging joint ventures, partnerships and licensing agreements in Western Europe, Japan and elsewhere. The globalization of small business underscores corporate America's belief that in the future most companies, even small ones, must compete internationally to be successful.
New type of products
Explanation:
- Small and new firms can develop new products that cretae clear value proposition
- Though the market segment with lower transaction volumes/customer are usually deterrent to to small and new firms, the ability to work with a small group of consumers who have a better tolerance for experimental products builds the ideal environment for prototyping new products
- Moreover small and new firms have greater tolerant mindset while enduring problems during implementation
- If products are to be developed to services the requirements of the market, it is only a matter of re-scaling and not reinventing